The project represents an expansion of vital energy infrastructure that will further connect robust supplies of natural gas in the Marcellus and Utica producing region in Pennsylvania with growing demand centres along the Atlantic Seaboard as early as 4Q21 assuming all necessary regulatory approvals are received in a timely manner.
Transco is the nation’s largest-volume interstate natural gas pipeline system. It delivers natural gas to customers through its approximately 10 000 mile pipeline network whose mainline extends nearly 1800 miles between South Texas and New York City. The system is a major provider of cost-effective natural gas services that reach US markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.
The Leidy South project is being designed to further expand the Transco pipeline’s Marcellus and Utica takeaway capacity from the Leidy Hub and Zick interconnect to points downstream in Transco’s Zone 6 market area.
“Since 2013 the Transco pipeline’s design capacity has grown by 62%, while its Marcellus takeaway capacity has increased by approximately 3 billion ft3/d,” said Frank Ferazzi, Senior Vice President of Williams’ Atlantic-Gulf Operating Area. “The Leidy South project allows Williams to continue to grow our strategic footprint in the gas-rich Marcellus region, creating a unique opportunity to expand Transco by leveraging recent expansions on Williams’ Northeast Gathering and Processing assets in Pennsylvania.”
Williams Northeast Gathering and Processing Operating Area Senior Vice President Jim Scheel said the project is a good example of synergies that can be achieved through Williams’ strong position in the Marcellus Basin.
“This and future takeaway capacity helps Williams – and our customers – capitalise on our extensive gathering system, optimising connectivity with producers strategically positioned throughout the basin, and demonstrating mutual growth,” said Scheel. “Projects like Leidy South are a natural bi-product of that growth, providing producers with a single, integrated Williams solution to connect abundant, cost-effective Appalachian natural gas supplies with premier consuming markets located all along the East Coast.”
The Leidy South project will consist of compression and looping of existing Transco facilities in Pennsylvania. The project will also include two lease agreements; one with National Fuel Gas Supply Corporation from Leidy Hub to Clermont, Pennsylvania; and a second with Meade Pipeline Company from Zick to River Road on the Central Penn Line.
The preliminary schedule for project permitting activity begins with Transco’s planned submission in October of its request to commence the pre-filing process with the Federal Energy Regulatory Commission. The project will not impact Williams’ 2019 growth capital expenditures guidance.