Williams announces open season for Diamond East Project

Williams has announced that it is initiating an open season from 26 August to 23 September, 2014 for the Diamond East Project, an expansion of the Transco interstate pipeline to provide firm natural gas transportation capacity to markets in the northeastern US by mid-2018. Transco is a wholly owned subsidiary of Williams Partners, L.P., of which Williams owns controlling interests and is the general partner.

“Diamond East is another example of Williams' commitment to add critical infrastructure that will connect growing Transco markets to abundant, economically-priced Marcellus production”

The Diamond East Project is being designed to provide up to 1 billion ft³/d of new natural gas transportation capacity from receipt points along its Leidy Line in Lycoming County, Pennsylvania and Luzerne County, Pennsylvania to its Market Pool at Station 210 in Mercer County, New Jersey where it can provide supply diversity to Transco's northeast market, including existing Pennsylvania, New Jersey and New York local distribution companies and power generators.

Diamond East will consist of additional compression and selected pipeline loop segments along the existing Transco pipeline corridor. Although the final capacity, scope and cost of the project will be determined by the results of the open season, it is anticipated that the project will include approximately 50 miles of pipeline looping and horsepower additions at existing Transco compressor facilities. The capital investment for Diamond East is estimated to be between US$ 500 million to US$ 800 million, depending on customer participation and volume commitments.

"Diamond East is another example of Williams' commitment to add critical infrastructure that will connect growing Transco markets to abundant, economically-priced Marcellus production," said Rory Miller, senior vice president of Williams' Atlantic-Gulf Operating Area. "Unlike competing projects designed to serve the New Jersey Market Pool, Diamond East is a cost-effective expansion along an existing Transco corridor.”

The proposed project will be subject to approval by the Federal Energy Regulatory Commission and other agencies.

Diamond East is in addition to the US$ 3.3 billion in capital expenditures planned through 2017 on Transco growth projects designed to serve markets in the Northeast. Transco is the nation’s largest and fastest-growing interstate natural gas transmission pipeline system. It delivers natural gas to customers through its 10 200 mile pipeline network whose mainline extends nearly 1800 miles between South Texas and New York City. The system is a major provider of cost-effective natural gas services that reach US markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.

Adapted from press release by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/27082014/williams-announces-open-season-for-diamond-east-project/