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Transco applies for $927M Northeast Supply Enhancement gas pipeline project

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Transco applies for $927M Northeast Supply Enhancement gas pipeline project

Transcontinental Gas Pipe Line Co. LLC applied to FERC for authorization for its Northeast Supply Enhancement natural gas project, which would create 400,000 Dth/d of incremental transportation capacity to markets in the Northeast in time for the 2019-2020 winter heating season.

The project is intended to help meet the growing natural gas demand in the region, including the 1.8 million customers served by National Grid USA in Brooklyn, Queens, Staten Island and Long Island in New York. Transco has executed precedent agreements with National Grid subsidiaries for firm transportation service through the project. The project complements the Brooklyn Queens Interconnect and Rockaway lateral project, completed in spring 2016, the first new gas supply delivery point in decades for National Grid customers in the area.

Williams Partners LP announced the application in a March 27 news release. The application was not immediately available on the FERC website. Transco is a wholly owned subsidiary of Williams Partners, the MLP controlled by Williams Cos. Inc.

"Customers and businesses in the local communities that we serve in New York City and on Long Island benefit from affordable, clean and reliable energy," National Grid New York President Ken Daly said in the statement. "Williams' Northeast Supply Enhancement project expands on our commitment to further improve reliability, make available much-needed gas capacity to support job growth, and help reduce our carbon footprint."

Williams Partners said the Northeast Supply Enhancement project will help New York meet clean air goals. In April 2015, New York City Mayor Bill de Blasio said he would like to significantly cut the city's emissions by 2050, in part by phasing out the use of No. 4 fuel oil by 2030.

According to Williams Partners, the project would cost $926.5 million. The project has a target in-service date of Dec. 1, 2019. It would consist of about 10 miles of 42-inch pipeline loop; three miles of onshore 26-inch loop; 23 miles of offshore 26-inch loop; the addition of 21,902 horsepower at an existing compressor station; a new 32,000-hp compressor station; and related facilities.

Transco placed the project into the early FERC review process in May 2016. (FERC docket PF16-5)