TransCanada to build $500 million natural gas pipeline extension in Mexico

CALGARY, Alta. - TransCanada Corp. on Feb. 27 announced that it will build, own and operate the Tamazunchale Pipeline Extension in Mexico.

Construction of the natural gas pipeline is supported by the award of a 25-year natural gas transportation service contract by the Comision Federal de Electricidad (CFE), Mexico's state-owned power company.

TransCanada expects to invest approximately US$500 million in the pipeline and anticipates an in-service date in the first quarter of 2014. The project will be 146 miles long and have contracted capacity of 630 million cubic feet a day (MMCf/d). The pipeline will use a combination of 30- and 36-inch-diameter pipe and have 37 megawatts of installed compression.

The pipeline will originate at the terminus of TransCanada's existing Tamazunchale Pipeline in the state of San Luis Potosi and extend through the states of Hidalgo and Queretaro, where it will connect with Mexico's National Pipeline System and serve a CFE combined-cycle power generating facility near El Sauz, Queretaro.

"The Tamazunchale Pipeline Extension demonstrates our continued commitment to developing Mexico's energy infrastructure to meet growing requirements for increased natural gas supply," said Russ Girling, TransCanada's president and chief executive officer.

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.

SemGroup, Gavilon, Chesapeake to build Cushing oil pipeline

TULSA, Okla. - SemGroup Corp., Gavilon Midstream Energy LLC and an affiliate of Chesapeake Energy Corp. will form a joint venture to build a pipeline to deliver crude oil to a storage facility in Cushing, Okla., from production in western and north central areas of the state.

The pipeline will consist of two laterals, one originating near the town of Alva in Woods County, Okla., and the other near the town of Arnett in Ellis County, Okla. The laterals will intersect near Cleo Springs in Major County, Okla., where the pipeline will increase in diameter and continue east to storage at Cushing.

The pipeline and storage facility will meet growing midstream requirements resulting from the burgeoning drilling activity in western Oklahoma and the Mississippi Lime play.

Construction should begin in July and service is expected to start in the third quarter of 2013, according to a Feb. 21 statement. The 210-mile pipeline will have an initial capacity of 140,000 barrels a day (b/d) and can be expanded to 180,000 barrels.

Lateral lines from Alva and Arnett, Okla., will intersect and bring crude oil to a one-million-barrel-capacity tank farm in Cushing.

Cushing is the largest U.S. oil-storage hub and delivery point for crude futures traded on the New York Mercantile Exchange. The hub’s total capacity was 66.5 million barrels at the end of September, according to the U.S. Energy Department.

TC Pipelines, LP Cash Flow Increases in Fourth Quarter 2011

TC PipeLines, LP (NYSE: TCP) on Feb., 16 reported fourth quarter 2011 Partnership cash flow of $83.3 million compared to $51.7 million for the same period in 2010. For the year ended Dec. 31, Partnership cash flow was $222.4 million, compared to $180.1 million in 2010.

Net income in the fourth quarter 2011 was $38.3 million or $0.70 per common unit, and for the year ended Dec. 31 was $157.4 million or $3.02 per common unit.

"The Partnership's results in 2011 demonstrate a commitment to our strategy of investing in stable, long-term assets. The addition of interests in two high-quality pipelines, GTN and Bison, diversified and strengthened our portfolio by adding new markets and new supply sources," said Steve Becker, president of TC PipeLines GP, Inc.

--  Full-Year Highlights:

    --  Partnership cash flows of $222.4 million

    --  Paid cash distributions of $154.8 million

    --  Increased cash distributions paid by 3.4 percent to $3.04 per common unit

    --  Net income of $157.4 million or $3.02 per common unit

    --  Acquired 25 percent interest in two long-haul natural gas pipelines: Gas Transmission Northwest LLC (GTN) and Bison Pipeline LLC (Bison)

    --  Raised $337.6 million in equity from a secondary issuance of common units in connection with the GTN and Bison acquisition

    --  Raised $350.0 million in first public debt offering and obtained investment grade credit ratings (BBB/Baa2)

--  Fourth Quarter Highlights:

    --  Partnership cash flows of $83.3 million, including a one-time cash distribution from GTN of $20.0 million related to its cash balance

        at the time of acquisition

    --  Paid cash distributions of $42.0 million

    --  Declared cash distributions of $0.77 per common unit

    --  Net income of $38.3 million or $0.70 per common unit

    --  Achieved rate case settlement on Tuscarora, pending Federal Energy Regulatory Commission (FERC) approval

    --  Received approval from FERC on GTN rate settlement

    --  Moved exchange listing to the New York Stock Exchange (NYSE) and changed trading ticker symbol to 'TCP'