Williams announces FERC approval of natural gas pipeline to serve an electric generating facility
Williams (ticker: WMB) announced that the Federal Energy Regulatory Commission (FERC) has approved Transco’s application to expand its mainline pipeline system and construct an 11-mile lateral connecting Transco to an electric power generating facility in Cecil County, Maryland. Transco is a wholly owned subsidiary of Williams Partners L.P. (ticker: WPZ), of which Williams owns controlling and general-partner interests.
The Rock Springs expansion project is designed to transport 192,000 dekatherms of natural gas per day to Old Dominion Electric Cooperative’s planned Wildcat Point Generation Facility, the press release said. The facility is expected to generate approximately 1,000 megawatts. The project is part of the $4.8 billion in transmission projects Transco plans to place into service through 2017, according to Frank Ferazzi, Vice President & General Manager of Williams’ Transco pipeline.
Williams looks to expand even further
Williams put out a second press release just minutes after the Rock Springs expansion announcement saying it filed an application with the FERC for its Dalton Expansion Project. The Dalton Expansion will supply gas from the Marcellus to the Southeast for electricity generation and local natural gas distribution.
Transco has executed long-term agreements with shippers for 100% of the 448,000 dekatherms of firm transportation capacity that will be created through the project. The project will consist of an expansion of Transco’s mainline from its Station 210 in New Jersey to points as far south as Holmesville, Mississippi, and a new 111-mile lateral pipeline from Transco’s Station 115 to Murray County, Georgia. Also included in the expansion is a new compressor facility in Carrol County, Georgia, as well as three new metering facilities and other related pipe and valve modifications to existing facilities.
In order to fund the lateral portion of the project, WMB’s Transco and AGL Resources’ Dogwood Enterprise Holdings have entered into an ownership arrangement whereby each party will hold a 50% undivided joint ownership interest in the lateral pipeline in Georgia. Under the proposal, Dogwood Enterprises will lease its ownership interest in the lateral to Transco. Transco’s net investment in the project is expected to be approximately $275 million.
Construction is planned to begin in Q3’16 with completion targeted for 2017, subject to approval from regulatory bodies like the FERC.
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