FERC approves Northwest Pipeline pre-filed rate settlement

TULSA, Okla. - Williams Partners L.P. (WPZ) on April 27 announced that its Northwest Pipeline system received approval from the Federal Energy Regulatory Commission on a pre-filed rate settlement.

Northwest filed a Stipulation and Settlement Agreement with the FERC on March 15.

The supporting or non-opposing customers named in the settlement represent approximately 99.5 percent of Northwest's long-term firm transportation and storage capacity.

Williams (WMB) owns approximately 69 percent of Williams Partners, including the general-partner interest.

"We're pleased to have reached a settlement with our customers. We appreciate the long-standing relationships with them that allowed us to work cooperatively and reach a timely quick settlement," said Randy Barnard, senior vice president of the partnership's interstate gas pipeline business.

The settlement is based on an annual cost of service of $466.5 million and established a new general system firm transportation rate of $0.44 per dekatherm, a 7.4 percent increase over the current rate. New rates will become effective Jan. 1, 2013. Northwest can file another rate case in three years and must file within five years. The settlement is in line with Williams Partners' and Williams' earnings and cash flow guidance for 2013 and 2014.

Williams blames natural gas compressor station explosion on worker error

MONTROSE, Pa. - State regulators and natural gas company officials faced nearly two hours of questions from residents about safety, air pollution and eroded public confidence during a briefing on April 17 at Montrose Area High School about a recent natural gas compressor station explosion.

Officials with the state Department of Environmental Protection and Williams, the company that owns the compressor station, sought to fill in gaps in the public understanding of the explosion and fire at the Lathrop station on March 29 and reassure citizens that the operations are safe.

Frank Billings, vice president for Williams' natural gas gathering and processing operations for the region, said the incident began with a worker error during maintenance of one of the compressor engines at the station. The company has since reviewed and reiterated its training protocols.

The mistake allowed gas to enter the compressor before it was ready, and the gas in the building ignited. Workers evacuated the site safely, he said. One employee suffered a minor injury that was reported after the incident.

"It was really a failure to follow one of our basic administration and safety procedures," he said.

Williams Partners notes progress on natural gas supply hub in Pennsylvania

TULSA, Okla. - Williams Partners L.P. (NYSE: WPZ) on Feb. 21 announced two major milestones in its strategy to create a major natural gas supply hub in northeastern Pennsylvania.

Williams (NYSE: WMB) owns 72 percent of Williams Partners.

The new 120-mile Constitution Pipeline will connect Williams Partners' gathering system in Susquehanna County, Pa., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY. Williams Partners will own 75 percent of Constitution Pipeline and, through its affiliates, will provide construction, operation and maintenance services for the new pipeline. Cabot will own the remaining 25 percent.

The new pipeline will initially be designed to transport at least 500,000 dekatherms per day of Cabot's Marcellus production, but will be expandable to meet growing demand for takeaway capacity in northeast Pennsylvania.

Constitution Pipeline will be regulated by the Federal Energy Regulatory Commission (FERC). Williams Partners expects to initiate the FERC application process soon.

Williams Partners also has completed the acquisition of the Laser Northeast Gathering System and other midstream businesses from Delphi Midstream Partners, LLC. The original acquisition along with additional pipeline construction was funded with $329 million in cash and approximately 7.5 million Williams Partners units.

These two projects are key steps in Williams Partners' strategy to create the Susquehanna Supply Hub, a major natural gas supply hub in northeastern Pennsylvania.

By 2015, Williams Partners expects the Susquehanna Supply Hub to be capable of delivering more than three billion cubic feet per day (Bcf/d) of Marcellus Shale production into four major interstate gas pipeline systems.

"We are developing all the key elements of a major new supply area hub, where we can provide Marcellus Shale producers in northeast Pennsylvania with a large-scale gathering system that has significant takeaway capacity to the best available markets," said Alan Armstrong, chief executive officer of Williams Partners' general partner. "It's key to our strategy of providing large-scale infrastructure and continuing to build on our significant fee-based midstream and gas pipeline businesses."

Williams Partners' gathering system in northeastern Pennsylvania currently covers three counties and has a capacity of 750 million cubic feet per day (MMcf/d). With the recent start-up of the Springville pipeline, it is now connected to three major interstate gas pipeline systems - Williams Partners' Transco system, Tennessee Gas Pipeline and Millennium Pipeline.

Transco proposes 258-mile Atlantic Access gas pipeline for Marcellus Shale

JOHNSTOWN, Pa. - Transcontinental Gas Pipe Line Co. is maneuvering to construct a pipeline to carry Marcellus Shale natural gas across Pennsylvania to West Virginia.

The Atlantic Access Project, a proposed 258-mile pipeline using 36-inch pipe, would move fuel from the rich Marcellus gas fields of western Pennsylvania and the panhandle of West Virginia to eastern gas-hungry markets.

"We are early - early in this process," said Christopher Stockton, a spokesman for Houston-based Transco. Transco is owned by The Williams Co. Inc. of Tulsa, Okla.

The company has filed a pre-application, amounting to a request for a review of project plans, with the Federal Energy Regulatory Commission.

The project could cost $1 billion, according to U.S. Rep. Bill Shuster, chairman of the House Subcommittee on Railroads, Pipelines and Hazardous Materials.

When the pipeline is completed, it would carry 1,350,000 dekatherms of natural gas per day, or enough energy to provide winter heat for 1,350,000 homes for one day, according to calculations by Penn State's Marcellus Center for Outreach and Research.

Southern Union shareholders approve merger with Energy Transfer

DALLAS, Texas. - Southern Union Co. shareholders on Dec. 9 overwhelmingly approved a $9.4 billion merger with Energy Transfer Equity LP, ending Tulsa-based Williams Cos. Inc.'s chance of gaining reconsideration for its lower bid to buy the Houston-based pipeline company.

Williams, however, still has a shot at buying some of Southern Union's pipeline assets after the merger.

"Obviously, Williams has shown interest in the assets in the past," company spokeswoman Julie Gentz said.

"While we can't speculate on any future actions, Williams is always looking at strategic and financially disciplined growth opportunities."

Energy Transfer CEO Kelcy Warren said last month that the Dallas-based ETE would not rule out a later deal with its former bidding rival.