Williams Receives Approval for Mid-Atlantic Pipeline Expansion

(P&GJ) — Williams has received approval from the Federal Energy Regulatory Commission (FERC) to move forward with its Leidy South Project, which will create 582,400 Dth/d of additional pipeline capacity in the eastern United States. 

The project will connect natural gas produced by Cabot Oil & Gas and Seneca Resources Company in the Marcellus and Utica regions of Pennsylvania with demand markets along the Atlantic Seaboard by the 2021-2022 winter heating season.

Local distribution company UGI Utilities will be rely on deliveries from Leidy South to directly serve its customers in northeast Pennsylvania, Williams said.

“As the United States switches to clean power to energize our electric grids, Williams is excited and proud to be the backbone that connects the best supplies of dry gas with our country’s largest demand centers,” said Alan Armstrong, president and chief executive officer of Williams.

The Leidy South project is designed to minimize environmental impacts by maximizing the use of existing Transco pipeline infrastructure and rights of way in Pennsylvania. This includes 6.3 miles of existing pipe replacement, 5.9 miles of new pipeline loop segments along the existing Transco pipeline corridor, and horsepower additions at two existing compressor facilities. The project also will include two new greenfield compressor facilities in Pennsylvania.

In addition, the project includes two lease arrangements: a capacity lease with National Fuel Gas Supply Corporation to enable the project to connect Clermont, Pennsylvania, to the Leidy Hub; and a lease of Meade Pipeline Company’s undivided ownership interest in the Central Penn Line from Zick to River Road.

Construction of the project’s two compressor facilities is estimated to generate $100 million in economic activity within Pennsylvania, supporting 680 jobs with estimated payroll of $28 million, and produce $1.3 million in state tax revenue.

Transco is the nation’s largest-volume interstate natural gas pipeline system. It delivers natural gas to customers through its approximately 10,000-mile pipeline network who’s mainline extends nearly 1,800 miles between South Texas and New York City. 

The system is a provider of natural gas services that reach U.S. markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.

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