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Transco secures contracts for full capacity of Leidy South pipe expansion

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Transco secures contracts for full capacity of Leidy South pipe expansion

Transcontinental Gas Pipe Line Co. LLC completed binding contracts with two natural gas producers for the full transportation capacity of the planned Leidy South pipeline expansion project, which would bring Appalachian supplies to markets in the Atlantic seaboard.

The Williams Cos. Inc. pipeline subsidiary executed 15-year commitments with Seneca Resources Co. LLC and Cabot Oil & Gas Corp., covering all 580,000 Dth/d of available firm transportation capacity under the Leidy South expansion, according to an Oct. 9 news release. Seneca Resources is the exploration and production subsidiary of National Fuel Gas Co.

Cabot signed up for 250,000 MMBtu/d of firm capacity on the project. Cabot will also be an equity owner in the project through its stake in Meade Pipeline Co. LLC, a joint venture Cabot formed in 2014 with Vega Energy Partners Ltd., WGL Holdings Inc. and the private equity firm Energy Investors Fund. Meade Pipeline owns a segment of Williams' 1.7-Bcf/d Atlantic Sunrise expansion project.

Transcontinental Gas, or Transco, designed the Leidy South project to expand its takeaway capacity from the Marcellus and Utica shale plays at the Leidy Hub and Zick interconnect in Pennsylvania to points in Transco's Zone 6 market area in the U.S. Northeast, the company said. It involves adding compression and looping existing Transco facilities. Transco plans to file a request to begin the pre-filing process for the project with the Federal Energy Regulatory Commission in October.

The expansion is scheduled to begin operations in the fourth quarter of 2021. Transco is the U.S.' largest gas pipeline system by volume, operating a pipeline network of about 10,000 miles with a mainline extending about 1,800 miles between South Texas and New York City.