Williams Seeks FERC Approval for Fully Subscribed Pipeline Expansion to Serve Southeast’s Growing Demand for Natural Gas
March 19 2015 - 3:15PM
Business Wire
Williams (NYSE: WMB) announced today that Transco has filed an
application with the Federal Energy Regulatory Commission (FERC)
for its Dalton Expansion Project, which would support providing
Marcellus shale gas to the Southeast for electricity generation and
local natural gas distribution.
Transco, the nation’s largest-volume and fastest-growing
interstate natural gas pipeline system, is a wholly owned
subsidiary of Williams Partners L.P. (NYSE: WPZ), of which Williams
owns controlling and general-partner interests.
Transco has executed long-term agreements with shippers for 100
percent of the 448,000 dekatherms of firm transportation capacity
to be created under the Dalton Expansion 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, Miss., and a
new 111-mile lateral pipeline from Transco’s Station 115 to Murray
County, Ga. Also included in the expansion is a new compressor
facility in Carroll County, Ga., as well as three new metering
facilities and other related pipe and valve modifications to
existing facilities.
“As long-term demand for natural gas continues to grow,
particularly in the power-generation sector, we’re executing a
series of large-scale, integrated projects like the Dalton
Expansion that move surging supplies in the northeast to high-value
markets along the Eastern Seaboard and in the Southeast,” said Rory
Miller senior vice president of Williams’ Atlantic-Gulf operating
area. “These projects create the durable, fee-based revenues that
represent the vast majority of our business. Over the next three
years, 99 percent of Williams Partners’ planned $9 billion of
growth capital is going toward fully-contracted, fee-based
projects.”
To fund the lateral pipeline portion of the project, Williams
Partners’ Transco and AGL Resources’ Dogwood Enterprise Holdings,
Inc. have entered into an ownership arrangement whereby each party
will hold a 50 percent 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.
Williams and AGL Resources initially disclosed their intent to
develop the project in March 2014. Siting and environmental studies
have been underway since that time, and today’s announcement
signifies the commencement of the FERC approval process.
Construction is planned to begin in the third quarter of 2016 with
completion targeted for 2017, subject to all necessary or required
approvals by regulatory bodies, including the FERC.
About AGL Resources
AGL Resources (NYSE: GAS) is an Atlanta-based energy services
holding company with operations in natural gas distribution, retail
operations, wholesale services and midstream operations. AGL
Resources serves approximately 4.5 million utility customers
through its regulated distribution subsidiaries in seven states.
The company also serves approximately 630,000 retail energy
customers and approximately 1.2 million customer service contracts
through its SouthStar Energy Services joint venture and Pivotal
Home Solutions, which market natural gas and related home services.
Other non-utility businesses include asset management for natural
gas wholesale customers through Sequent Energy Management and
ownership and operation of natural gas storage facilities. AGL
Resources is a member of the S&P 500 Index. For more
information, visit www.aglresources.com.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale
infrastructure to connect North American natural gas and natural
gas products to growing demand for cleaner fuel and feedstocks.
Headquartered in Tulsa, Okla., Williams owns approximately 60
percent of Williams Partners L.P. (NYSE: WPZ), including the
general-partner interest. Williams Partners is an industry-leading,
large-cap master limited partnership with operations across the
natural gas value chain from gathering, processing and interstate
transportation of natural gas and natural gas liquids to petchem
production of ethylene, propylene and other olefins. With major
positions in top U.S. supply basins and also in Canada, Williams
Partners owns and operates more than 33,000 miles of pipelines
system wide – including the nation’s largest volume and fastest
growing pipeline – providing natural gas for clean-power
generation, home heating and industrial use. Williams Partners’
operations touch 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 reports filed with the Securities and Exchange
Commission.
WilliamsMedia Contact:Tom Droege,
918-573-4034orInvestor Contacts:John Porter,
918-573-0797orBrett Krieg, 918-573-4614
Williams Partners (NYSE:WPZ)
Historical Stock Chart
From Apr 2024 to May 2024
Williams Partners (NYSE:WPZ)
Historical Stock Chart
From May 2023 to May 2024