Williams Partners receives FERC approval to provide additional natural gas service to Northeast

Thursday, Nov 08, 2012

Williams Partners L.P. (NYSE: WPZ) announced today that the Federal Energy Regulatory Commission (FERC) has approved a proposal to expand its Transco natural gas pipeline to provide an additional 250,000 dekatherms of incremental firm natural gas transportation capacity to serve growing markets in the Northeast by November 2013.

“The Northeast Supply Link Project leverages existing Transco pipeline infrastructure to provide robust Northeastern markets with access to abundant domestic natural gas supplies”

The Northeast Supply Link project is designed to expand the Transco Leidy Line and Transco mainline in Pennsylvania and New Jersey to transport domestic supplies of natural gas to growing northeastern markets.

“The Northeast Supply Link Project leverages existing Transco pipeline infrastructure to provide robust Northeastern markets with access to abundant domestic natural gas supplies,” said Frank Ferazzi, vice president and general manager of Williams Partners’ gas pipeline business, East region. “We appreciate the FERC’s thorough review of this project and look forward to providing our customers with additional access to clean energy.”

The expansion project will primarily consist of approximately 12 miles of new pipe at various locations in Pennsylvania and New Jersey, in addition to a new 25,000 horsepower compressor facility in Essex County, N.J., along with other facility modifications. The capital cost of the project is estimated to be $341 million.

The Northeast Supply Link expansion will provide incremental firm transportation capacity from receipt points on the Leidy Line to New York City and Transco’s Station 210 in New Jersey. Most of the new pipe will be installed either entirely within or parallel to existing pipeline and utility rights-of-way. The new Essex County compressor facility will be constructed on land already owned by Williams. All other compression-related activities will be performed entirely within existing compressor station facilities.

Compressor station construction is scheduled to begin in November 2012 with pipeline construction following in the spring of 2013. The project is scheduled to be placed into service in November 2013.

Earlier this year, Williams Partners announced the proposed Leidy Southeast expansion project to provide firm transportation from various supply points along Transco's Leidy Line to delivery points in the Southeast, ultimately terminating at its Zone 4 Market Pool in Alabama.

The target in-service date for that project is December 2015.

The Transco pipeline is a 10,200-mile pipeline system which transports natural gas to markets throughout the Northeastern and Southeastern United States. The current system capacity is approximately 9.7 million dekatherms per day.

Source: Business Wire

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