Williams Co.s Inc. (WMB) said on Wednesday that the Federal Energy Regulatory Commission (FERC) permitted it to extend its interstate Transco pipeline by 308.5 thousand dekatherms per day (Mdt/d) that will help the natural gas producer to reach southeastern US markets.
The Transco natural gas pipeline is a 10,500-mile pipeline system that carries natural gas to markets all over the northeastern and southeastern U.S. The current expansion is expected to boost the total system capacity to almost 8.5 billion cubic feet per day.
Known as the 85 North expansion project, the new service would be implemented in two phases. The first phase would increase capacity by 90 Mdt/d by summer 2010, while the second phase would raise capacity by 218.5 Mdt/d by summer 2011. Phase I construction is slated to begin this fall, while work on the second phase is scheduled to get underway next summer.
The project, with an estimated cost of $248 million, will require construction of nearly 22 miles of 42-inch pipeline along with a new 20,500hp compressor facility in Anderson County, South Carolina, and modifications to existing compressor facilities.
The FERC approval will allow Williams to move forward with its plan for the 85 North project, which will connect ramped up volumes at Transco’s two new pipeline interconnects at Station 85 to growing downstream markets in the southeastern U.S. We currently rate Williams shares as Neutral.
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