Williams Seeks FERC Approval for Leidy South Project to Increase Marcellus & Utica Takeaway Capacity
August 01 2019 - 8:30AM
Business Wire
Williams (NYSE: WMB) announced today that its Transco interstate
pipeline has filed an application with the Federal Energy
Regulatory Commission (FERC) seeking authorization for its Leidy
South project, which is proposed to connect robust supplies of
natural gas in the Marcellus and Utica producing regions in
Pennsylvania with markets along the Atlantic Seaboard by the
2021-2022 winter heating season.
The Leidy South project will expand Transco’s firm
transportation capacity by 582,400 dekatherms per day from the
Leidy Hub and Zick interconnect to points downstream in Transco’s
Zone 5 and Zone 6 market areas. Seneca Resources Company, LLC,
Cabot Oil & Gas Corporation and UGI Utilities have executed
binding, 15-year commitments for 100 percent of such capacity.
“The Leidy South project will allow 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,” said Micheal Dunn, chief operating officer of
Williams.
The Leidy South project is designed to minimize environmental
impacts by maximizing the use of existing Transco pipeline
infrastructure and rights of way in Pennsylvania. This includes 6.3
miles of existing pipe replacement, 5.9 miles of new pipeline loop
segments along the existing Transco pipeline corridor, and
horsepower additions at two existing compressor facilities. The
project also will include two new greenfield compressor facilities
in Pennsylvania.
In addition, the project includes two lease arrangements: a
capacity lease with National Fuel Gas Supply Corporation to enable
the project to connect Clermont, Pennsylvania, to the Leidy Hub;
and a lease of Meade Pipeline Company’s undivided ownership
interest in the Central Penn Line from Zick to River Road.
Dunn added, “Pennsylvania is the second-largest natural gas
producing state in the U.S., producing a record 6 trillion cubic
feet of gas in 2018. While Pennsylvania produces record volumes of
natural gas, pipeline infrastructure constraints continue to limit
consumer access to the state’s supplies. Our Leidy South project
will help ease natural gas supply constraints, creating enough
additional pipeline capacity to serve approximately 2.5 million
homes and enabling power plants to convert from coal to
cleaner-burning natural gas.”
The certificate application reflects an expected capital cost of
$531 million and a target in-service of Dec. 1, 2021.
According to third-party researchers, construction of the Leidy
South Project’s two greenfield compressor facilities is estimated
to generate $100 million in economic activity within Pennsylvania,
supporting 750 jobs with combined earnings of $28 million, and
produce $1.3 million in state tax revenue.
Transco delivers natural gas to customers through its
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.
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, Oklahoma, 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 30,000
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% 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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