Williams has announced that Transco has filed an application with the Federal Energy Regulatory Commission (FERC) for its Dalton Expansion Project, which would support providing Marcellus shale gas to the Southeast for electricity generation and local natural gas distribution.
Transco, the nation鈥檚 largest-volume and fastest-growing interstate natural gas pipeline system, is a wholly owned subsidiary of Williams Partners L.P., of which Williams owns controlling and general-partner interests.
Transco has executed long-term agreements with shippers for 100% of the 448 000 dekatherms of firm transportation capacity to be created under the Dalton Expansion Project. The project will consist of an expansion of Transco鈥檚 mainline from its Station 210 in New Jersey to points as far south as Holmesville, Miss., and a new 111 mile lateral pipeline from Transco鈥檚 Station 115 to Murray County, Ga. Also included in the expansion is a new compressor facility in Carroll County, Ga., as well as three new metering facilities and other related pipe and valve modifications to existing facilities.
鈥淎s long-term demand for natural gas continues to grow, particularly in the power-generation sector, we鈥檙e executing a series of large-scale, integrated projects like the Dalton Expansion that move surging supplies in the northeast to high-value markets along the Eastern Seaboard and in the Southeast,鈥� said Rory Miller senior vice president of Williams鈥� Atlantic-Gulf operating area. 鈥淭hese projects create the durable, fee-based revenues that represent the vast majority of our business. Over the next three years, 99% of Williams Partners鈥� planned US$9 billion of growth capital is going toward fully-contracted, fee-based projects.鈥�
To fund the lateral pipeline portion of the project, Williams Partners鈥� Transco and AGL Resources鈥� Dogwood Enterprise Holdings, Inc. have entered into an ownership arrangement whereby each party will hold a 50% undivided joint ownership interest in the lateral pipeline in Georgia. Under the proposal, Dogwood Enterprises will lease its ownership interest in the lateral to Transco. Transco鈥檚 net investment in the project is expected to be approximately US$275 million.
Williams and AGL Resources initially disclosed their intent to develop the project in March 2014. Siting and environmental studies have been underway since that time, and today鈥檚 announcement signifies the commencement of the FERC approval process. Construction is planned to begin in the third quarter of 2016 with completion targeted for 2017, subject to all necessary or required approvals by regulatory bodies, including the FERC.
Adapted from press release by