Williams Partners L.P. announced that Transco has filed an application with the Federal Energy Regulatory Commission (FERC) seeking authorization for its Southeastern Trail expansion project, which would create 296,375 dekatherms per day of additional firm transportation capacity to markets in the Mid-Atlantic and Southeastern U.S. for the 2020/2021 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. (NYSE: WPZ), of which Williams owns approximately 74 percent, including the general-partner interest.
Williams Partners has executed precedent agreements with utility and local distribution companies located in Virginia, North Carolina, South Carolina and Georgia for firm transportation service under the project. Once complete, the project will help meet the growing natural gas demand in the Southeast, as well as provide access to new sources of domestic natural gas supply while enhancing system reliability.
“Southeastern Trail is a critical project that will work to bring key supplies from interconnects in the Mid-Atlantic region to growing demand centers in the Southeastern U.S.,” said Micheal Dunn, chief operating officer of Williams Partners’ general partner. “This vital project, along with additional expansion opportunities under development, will link low-cost supply to key customers in high-growth markets and continues the expansion of southbound capacity on the Transco pipeline system. Construction of this project along Transco’s existing corridor results in significantly less environmental impact and more economical transportation rates for our customers than other greenfield projects serving these same markets.”
The company held an open season for the project last summer and executed long-term binding precedent agreements with five natural gas shippers for 100 percent of the firm transportation capacity. Customers served by the project are PSNC Energy, South Carolina Electric & Gas, Virginia Natural Gas, the City of Buford, Ga., and the City of LaGrange, Ga.
Subject to approval by the Federal Energy Regulatory Commission, the Southeastern Trail Expansion project will consist of approximately 7.7 miles of 42-inch pipeline looping facilities in Virginia, horsepower additions at existing compressor stations in Virginia, and piping and valve modifications on other existing facilities in South Carolina, Georgia, and Louisiana to allow for bi-directional flow.
The certificate application reflects an expected capital cost of $404.8 million and a target in-service commitment of Nov. 1, 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.
