Williams’ Transco Pipeline Receives Binding Commitments for 580 Million Dekatherms per Day of Firm Natural Gas Pipeline Cap...
09 October 2018 - 9:15PM
Business Wire
Project Aims to Expand Market Connectivity for
Growing Marcellus Supplies
Williams (NYSE: WMB) today announced that its Transco interstate
pipeline has executed binding, 15-year commitments with Seneca
Resources Company, LLC and Cabot Oil & Gas Corporation for 100
percent of the 580 million dekatherms of firm transportation
capacity under its proposed Leidy South expansion project.
The project represents an expansion of vital energy
infrastructure that will further connect robust supplies of natural
gas in the Marcellus and Utica producing region in Pennsylvania
with growing demand centers along the Atlantic Seaboard as early as
the fourth quarter of 2021 assuming all necessary regulatory
approvals are received in a timely manner.
Transco is the nation’s largest-volume interstate natural gas
pipeline system. It delivers natural gas to customers through its
approximately 10,000-mile pipeline network whose mainline extends
nearly 1,800 miles between South Texas and New York City. The
system is a major provider of cost-effective natural gas services
that reach U.S. markets in 12 Southeast and Atlantic Seaboard
states, including major metropolitan areas in New York, New Jersey
and Pennsylvania.
The Leidy South project is being designed to further expand the
Transco pipeline’s Marcellus and Utica takeaway capacity from the
Leidy Hub and Zick interconnect to points downstream in Transco’s
Zone 6 market area.
“Since 2013 the Transco pipeline’s design capacity has grown by
62 percent, while its Marcellus takeaway capacity has increased by
approximately 3 billion cubic feet per day,” said Frank Ferazzi,
Senior Vice President of Williams’ Atlantic-Gulf Operating Area.
“The Leidy South project allows Williams to continue to grow our
strategic footprint in the gas-rich Marcellus region, creating a
unique opportunity to expand Transco by leveraging recent
expansions on Williams’ Northeast Gathering & Processing assets
in Pennsylvania.”
Williams Northeast Gathering & Processing Operating
Area Senior Vice President Jim Scheel said the project is a
good example of synergies that can be achieved through Williams’
strong position in the Marcellus Basin.
“This and future takeaway capacity helps Williams – and our
customers – capitalize on our extensive gathering system,
optimizing connectivity with producers strategically positioned
throughout the basin, and demonstrating mutual growth,” said
Scheel. “Projects like Leidy South are a natural bi-product of that
growth, providing producers with a single, integrated Williams
solution to connect abundant, cost-effective Appalachian natural
gas supplies with premier consuming markets located all along the
East Coast.”
The Leidy South project will consist of compression and looping
of existing Transco facilities in Pennsylvania. The project will
also include two lease agreements; one with National Fuel Gas
Supply Corporation from Leidy Hub to Clermont, Pennsylvania; and a
second with Meade Pipeline Company from Zick to River Road on the
Central Penn Line.
The preliminary schedule for project permitting activity begins
with Transco’s planned submission in October of its request to
commence the pre-filing process with the Federal Energy Regulatory
Commission. The project will not impact Williams’ 2019 growth
capital expenditures guidance.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale
infrastructure connecting U.S. natural gas and natural gas products
to growing demand for cleaner fuel and feedstocks. Headquartered in
Tulsa, Okla., Williams is an industry-leading, investment grade
C-Corp with operations across the natural gas value chain including
gathering, processing, interstate transportation and storage of
natural gas and natural gas liquids. With major positions in top
U.S. supply basins, Williams owns and operates more than 33,000
miles of pipelines system wide – including Transco, the nation’s
largest volume and fastest growing pipeline – providing natural gas
for clean-power generation, heating and industrial use. Williams’
operations handle approximately 30 percent of U.S. natural gas.
www.williams.com
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the company
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Any such statements are made in reliance on the “safe
harbor” protections provided under the Private Securities Reform
Act of 1995. Additional information about issues that could lead to
material changes in performance is contained in the company’s
annual and quarterly reports filed with the Securities and Exchange
Commission.
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WilliamsMedia Contact:Christopher Stockton,
713-215-2010orInvestor Contacts:John Porter,
918-573-0797orPaul Schroedter, 918-573-9673
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