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 Partners' Transco Pipeline in agreement, announces open season

Williams Partners L.P. (NYSE: WPZ) announced on April 4 that it is initiating a binding open season to April 25 for an expansion of its Transco interstate pipeline to provide incremental firm natural gas transportation capacity to markets in southern Virginia and northern North Carolina by 2015.

Williams owns 72 percent of Williams Partners, including the general-partner interest.

The Virginia Southside Expansion Project is being designed to provide incremental firm transportation service on the Transco pipeline from its existing Zone 6 Station 210 pooling point in Mercer County, N.J., to delivery points along Transco's South Virginia Lateral. The company has executed a precedent agreement to provide Dominion Virginia Power with 250,000 dekatherms per day of the capacity and will solicit bids in the open season from shippers for additional deliveries along the project path. The proposed in-service date is September 2015.

Dominion Virginia Power would use its capacity for a 1,300-megawatt, combined-cycle, natural gas-fired power station that it plans to build in Brunswick County, Va.

"Williams is excited by this opportunity to partner with Dominion to serve Virginia's power needs and open this part of the Commonwealth to additional economic development," said Randy Barnard, president of Williams Partners' natural gas pipeline business.

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.

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.