Williams Partners L.P. (ticker: WPZ) announced that Transco has filed an application with the Federal Energy Regulatory Commission seeking authorization for its Northeast Supply Enhancement project, which would create 400,000 dekatherms per day of incremental firm transportation capacity to markets in the northeastern United States for the 2019/2020 winter heating season.
Transco, the nation’s largest-volume and fastest-growing interstate natural gas pipeline system, is a wholly owned subsidiary of Williams Partners L.P., of which Williams owns approximately 74 percent.
Transco has executed precedent agreements with subsidiaries of National Grid – the largest distributor of natural gas in the northeastern U.S. – for firm transportation service under the project. Once complete, the project will help meet the growing natural gas demand in the Northeast, including the 1.8 million customers served by National Grid in Brooklyn, Queens, Staten Island and Long Island.
“Customers and businesses in the local communities that we serve in New York City and on Long Island benefit from affordable, clean and reliable energy,” said Ken Daly, President, National Grid New York. “Williams’ Northeast Supply Enhancement project expands on our commitment to further improve reliability, make available much-needed gas capacity to support job growth, and help reduce our carbon footprint. This project complements the existing Brooklyn Queens Interconnect/Rockaway Lateral Project, which was completed last spring, and was the first new gas supply delivery point in decades for National Grid customers in this region.”
New York’s appetite for natural gas is increasing as consumers continue to phase out the use of heavy fuel oils. In April 2015, New York City Mayor Bill de Blasio announced sweeping goals to curb city emissions 80 percent by 2050, which includes phasing out the use of No. 4 fuel oil by 2030. The Northeast Supply Enhancement project creates the energy infrastructure to provide access to important natural gas supply to help New York meet its clean air goals.
“As demand for natural gas increases, the importance of the associated energy infrastructure becomes even more critical,” said Rory Miller, senior vice president of Williams Partners’ Atlantic-Gulf operating area. “The Northeast Supply Enhancement project will add critical infrastructure necessary to meet the region’s growing demand for natural gas while helping reduce air emissions.”
Subject to approval by the Federal Energy Regulatory Commission, the Northeast Supply Enhancement project will consist of approximately 10 miles of 42-inch pipeline looping facilities, three miles of onshore 26-inch looping facilities, 23 miles of offshore 26-inch looping facilities, the addition of 21,902 horsepower at an existing compressor station; a new 32,000 horsepower compressor station; and related appurtenant facilities.
The certificate application reflects an expected capital cost of $926.5 million and a target in-service date of Dec. 1, 2019. Consistent with Williams’ practice for financial planning, the capital cost and in-service target are further risked to $1.01 billion and May 2020.
Transco delivers natural gas to customers through its 10,200-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.
