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Transco applies for $531M pipeline expansion between Marcellus and East Coast

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Transco applies for $531M pipeline expansion between Marcellus and East Coast

Transcontinental Gas Pipe Line Co. LLC asked the Federal Energy Regulatory Commission to approve an application for a proposed interstate pipeline project that would boost natural gas transportation capacity from the Utica and Marcellus production region in Pennsylvania to the Atlantic Seaboard.

In an Aug. 1 press release, Williams Cos. Inc. said its subsidiary Transco filed an application. Williams said the in-service target date for the estimated $531 million Leidy South expansion project is Dec. 1, 2021. The application was not immediately available in the FERC library.

The Leidy South project will expand Transco's firm gas transportation capacity by 582,400 Dth/d from the Leidy hub and Zick interconnect to points downstream in Transco's Zone 5 and Zone 6 market areas. The project already has firm transportation contracts with Seneca Resources Corp., Cabot Oil & Gas Corp. and UGI Utilities Inc.

Williams said in the statement that the project would "minimize environmental impacts by maximizing the use of existing Transco pipeline infrastructure and rights of way in Pennsylvania." The project would replace 6.3 miles of existing pipeline, install 5.9 miles of new pipeline loop segments along the Transco pipeline corridor and add horsepower at two compressor facilities. The project also will include two new greenfield compressor facilities in Pennsylvania.

The project would also use lease arrangements with both National Fuel Gas Supply Corp. and Meade Pipeline Co LLC.

On July 18, National Fuel submitted an abbreviated application to FERC for the FM100 natural gas transportation project, part of a multiyear modernization of its system. The FM100 project, expected to cost between $250 million and $300 million, would connect to the Leidy South expansion project, and National Fuel told FERC to expect the Transco application by the end of July. (FERC docket CP19-491)

Williams told investors in a November 2018 earnings call that it had decided to move forward with the Leidy South expansion.