Williams’ Transco Pipeline Receives Binding Commitments for 580 Million Dekatherms per Day of Firm Natural Gas Pipeline Capacity on Proposed Leidy South Expansion
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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