Williams (NYSE: WMB) announced today that the Federal Energy Regulatory Commission (FERC) has approved a proposal to expand its Transco natural gas pipeline by 308,500 dekatherms per day to serve markets in the southeastern United States.

New service from the 85 North project will be available in two phases. Phase 1 will increase capacity by 90,000 dekatherms per day by the summer of 2010, while Phase II will increase capacity by 218,500 dekatherms per day by the summer of 2011.

"With volumes now ramping up at Transco's two new pipeline interconnects at Station 85, this project will connect these supplies to growing markets in the southeastern United States," said Phil Wright, president of Williams' natural gas pipeline business. "We appreciate the FERC's thorough review of this project. With the certificate now in hand, we will immediately move forward with constructing this much-needed capacity."

The 85 North project will require construction of approximately 22 miles of 42-inch pipeline, in addition to a new 20,500 horsepower compressor facility in Anderson County, S.C., as well as modifications to existing compressor facilities. Williams estimates that the project facilities will cost approximately $248 million. Phase I construction will begin this fall, while Phase II construction is scheduled to get underway next summer.

The Transco pipeline is a 10,500-mile pipeline system that transports natural gas to markets throughout the northeastern and southeastern United States. This expansion will increase the total system capacity of the Transco pipeline to approximately 8.5 billion cubic feet per day.

September 9, 2009 / category: Gas / link / comments (0)

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