Williams Partners receives approval for Transco pipeline expansion

Williams Partners L.P. has announced it has received Federal Energy Regulatory Commission (FERC) approval to expand Transco, the nation's largest natural gas pipeline system, to provide service to a customer's new, gas-fired power generation plant in Virginia. A unit of Dominion plans to construct the 1358 MW facility in Brunswick County, Virginia to replace generating capacity from retiring coal-fired plants.

Transco Virginia Southside Expansion

The approximately US$ 300 million Transco Virginia Southside Expansion is designed to provide 270 000 dth/d of incremental transportation capacity in Virginia and North Carolina by September 2015. Of the total expanded capacity, more than 90% will service Piedmont Natural Gas Company's local-distribution business in North Carolina.

The Virginia Southside Expansion is part of a US$ 2.2 billion of Transco growth projects that Williams Partners has previously announced it plans to bring into service between 2013 and 2017. Together, those projects are designed to increase Transco systems capacity by more than 35%. The expansions, which consists of 11 projects in nine eastern states, are designed to serve customers' demand for power generation, industries and local distribution.

Investments

"Our expansions of Transco over the last decade provide an impressive track record of our ability to execute on the growth opportunities that we and our customers create around this premier asset," said Alan Armstrong, Chief Executive Officer of Williams Partner's general partner. "Since 2003, we have invested nearly US$ 2 billion in 21 expansion projects that have increased Transco's transportation capacity by 55%.

"These vital infrastructure expansions connect the sizable and growing markets along the Transco system with the new, long-lived natural gas reserved that the US is blessed to have in abundant supply," Armstrong said.

"For WPZ unit holders, this Transo expansion is just one example of the US$ 4 billion to US$ 8 billion of investments in growth projects we expect to make this year through 2015. Together, these projects are deigned to grow the partnership in a way that continues to emphasise the foundation that growing fee-for-service revenues provides for the increased cash distributions we expect to make to out owners – including the majority owner and general partner Williams," Armstrong said."

Essential natural gas supply

Frank Ferazzi, Vice President and General Manager of Williams Partners' Transco system describes the project in this way: "The Virginia Southside Expansion is a great opportunity for us to help these utilities serve the growing electricity-generation and gas-distribution needs in this region. We look forward to working with the FERC and all stakeholders to provide essential natural gas supply access in a manner that is efficient and takes great care all along the route.”

The Virginia Southside Expansion is designed to consist of approximately 100 miles of new, 24 in. dia. pipeline extending from the Transco mainline in Pittsylvania Country, Virginia, and into Halifaz, Charlotte, Mecklenburg, and terminating in Brunswick County, Virginia. Transco’s plan is to place the pipe in parallel to its own existing pipeline, alongside the existing utility corridor. In addition, Transco is adding more than 21 000 horsepower of compression at Station 165 in Pittsylvania County, Virginia.

The Transco pipeline

The Transco pipeline is a 10 200 mile pipeline system that transports natural gas to markets throughout the northeastern and southeastern US. Current system capacity is approximately 10.15 million dth/day which is enough natural gas to serve the equivalent of more than 42 million homes.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/22112013/williams_partners_has_received_approval_for_transco_pipeline_expansion/