Williams Partners seeks FERC OK for more natural gas service to Northeast

TULSA, Okla. - Williams Partners L.P. (NYSE: WPZ) announced on Dec. 14 that its Transco pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) to provide 250,000 dekatherms per day of incremental, year-round firm natural gas transportation capacity to serve growing markets in the Northeast by November 2013.

The Northeast Supply Link project is designed to expand certain segments of the existing Transco pipeline in Pennsylvania and New Jersey to transport robust domestic supplies of natural gas to growing markets in the Northeast.

"Because of its existing location, the Transco pipeline is well positioned to connect vast domestic natural gas supplies with growing markets in New York, New Jersey and Pennsylvania," said Randy Barnard, president of Williams' natural gas pipeline business. "This increased access will not only enhance reliability of natural gas service, but should contribute to a more stable gas and electric pricing environment in markets served by the project."

The proposed expansion will primarily consist of approximately 12 miles of new pipe at various locations in Pennsylvania and New Jersey, in addition to a new 25,000-horsepower compressor facility in Essex County, N.J., along with other facility modifications. The capital cost of the project is estimated to be $341 million.

Most of the new pipe will be installed either entirely within or parallel to existing pipeline and utility rights-of-way. The new Essex County compressor facility will be constructed on land already owned by Williams. All other compression-related activities will be performed entirely within existing compressor station facilities.

If approved, compressor station construction would begin in November 2012 with pipeline construction following in the spring of 2013.

Williams Cos. plans $55 million expansion of Transco Pipeline

TULSA, Okla. - Williams Cos. Inc. will expand its Transco pipeline by approximately 142,000 dekatherms to serve additional markets in the mid-Atlantic region, the Tulsa natural gas company announced on Jan. 22.
The Mid-Atlantic Connection expansion will deliver fuel from an interconnection with East Tennessee Natural Gas in Rockingham County, N.C., to delivery points as far north as Maryland, according to the Williams news release. The deal needs Federal Energy Regulatory Commission approval.
The parent Williams Cos. soon will shift its 10,500-mile Transco and parts of other pipeline and midstream properties to subsidiary Williams Partners LP as part of a $12 billion restructuring. The deal eventually would absorb Williams Pipeline Partners LP into the subsidiary.

Williams Transco fined almost $1 million for Virginia pipeline accident

WASHINGTON - Almost a year after a natural gas pipeline explosion rocked Appomattox, Va., federal authorities have issued a proposed fine of almost $1 million following an investigation that found safety regulation violations.
The U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration levied a $952,500 fine on Williams Gas Pipeline after investigators found possible failures to "address regulatory requirements for monitoring and preventing external corrosion," according to an agency news release issued Aug. 10.
One of three pipelines operated by the Williams-owned Transco line ruptured and the natural gas release then ignited on Sept. 14, 2008, injuring five people, leveling two homes and damaging about 100 other houses. The resulting fireball scorched land some 1,125 feet away.
Investigators determined that external corrosion caused the line to rupture.
Chris Stockton, spokesperson for Williams, said it has been notified of the violation and is working with the oversight agency to implement its recommendations.

Rest of Midcontinent Express Pipeline placed in service

HOUSTON - Construction of the 500-mile Midcontinent Express Pipeline (MEP) is complete and natural gas transportation service began on Aug. 1, on the pipeline from Delhi, La., to Transcontinental Pipe Line's Station 85 in Butler, Ala. It was the last leg of the pipelines that was placed in service. Interim service had begun on the pipeline from Bennington, Okla., to Delhi in April.
MEP is a joint venture of Kinder Morgan Energy Partners, L.P. and Energy Transfer Partners, L.P.
"We are delighted that the final leg of the Midcontinent Express Pipeline is in service," said Steve Kean, president of Kinder Morgan's Natural Gas Pipelines group. Kinder Morgan constructed and will operate the pipeline.
"The completion of this final segment of MEP affords shippers and producers in the Barnett Shale, Bossier Sands and other producing regions access to markets in the eastern United States," said Lee Hanse, senior vice president of Energy Transfer's Interstate Pipeline group.
MEP has multiple receipt and delivery points along the pipeline system, which originates in southeast Oklahoma, crosses northeast Texas, northern Louisiana and central Mississippi and ends in Alabama. Capacity is currently up to 1.25 billion cubic feet (Bcf) per day in Zone 1, which interconnects with the Columbia Gulf Transmission system in Delhi and up to 0.84 Bcf per day in Zone 2, which interconnects with the Transcontinental Gas Pipe Line system in Butler.

Williams files to provide extended natural gas service to Southeast

TULSA, Okla. - Williams on Feb. 2 announced that it has filed an application with the Federal Energy Regulatory Commission to expand its Transco natural gas pipeline by 308,500 dekatherms per day to serve markets in the Southeastern United States.
New service from the 85 North project would be available in two phases, subject to FERC approval. Phase 1 would increase capacity by 90,000 dekatherms per day by the summer of 2010, while Phase II would increase capacity by 218,500 dekatherms per day by the summer of 2011.
"Combined with our Mobile Bay South project, the 85 North expansion creates over half a billion cubic feet of take-away capacity from Station 85 to downstream markets," said Phil Wright, president of Williams' natural gas pipeline business. "The project is strategically positioned to provide Transco customers with access to more than three Bcf per day of new domestic and LNG gas supplies at Station 85 over the next few years."