Williams brings latest Transco pipeline expansion into service

Source:Williams Partners

Demand for natural gas in the Southeast is growing at a rate well in excess of the national average. Williams Partners (NYSE: WPZ) announced today a major expansion of its Transco natural gas pipeline was completed and brought into service, providing an additional 225,000 dekatherms of incremental firm natural gas transportation capacity to growing markets in the Southeast United States.

The Mid-South Expansion project provides service to power generators in North Carolina and Alabama as well as a local distribution company in Georgia. The company placed into service the first phase of the expansion (95,000 dekatherms per day) in the fall of 2012 and recently placed into service the second phase of the expansion (130,000 dekatherms per day). Together, both phases of the project deliver enough natural gas to provide service to approximately one million homes.

Demand for natural gas in the Southeast is growing at a rate well in excess of the national average, in large part due to the environmental advantages of natural gas over other fossil fuels. Much of this growth is driven by increasing demand for natural gas in electric power generation.

The Mid-South Expansion project consists of approximately 23 miles of new pipeline, a new compressor facility in Dallas County, Ala., and upgrades to existing compressor facilities in Alabama, Georgia, South Carolina and North Carolina.

"This expansion represents another milestone in our build-out of Transco, the nation's largest gas pipeline system and a significant platform for growth," said Rory Miller, senior vice president of Atlantic-Gulf. "We're executing on more than $1.5 billion in additional Transco expansion projects primarily to create efficient access between the prolific natural gas production areas in the Northeast U.S. to growing demand centers in numerous Southeast and Atlantic Seaboard states."

Transco is a 10,200-mile pipeline system that transports natural gas to markets throughout the northeastern and southeastern United States. Transco's major customers are primarily power generators, local distribution companies and producers. In the last decade, the company has placed into service 16 Transco growth projects totaling in excess of $1.2 billion of capital investment, and growing system capacity to 9.9 MMdth/d.

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