Williams announced Friday that its Transco interstate pipeline has filed an application with the Federal Energy Regulatory Commission seeking authorization for its $531 million Leidy South project, which is proposed to connect supplies of natural gas in the Marcellus and Utica producing regions in Pennsylvania with markets along the Atlantic Seaboard by the 2021-2022 winter heating season.
The Leidy South project will expand Transco’s firm transportation capacity by 582,400 dekatherms per day from the Leidy Hub and Zick interconnect to points downstream in Transco’s Zone 5 and Zone 6 market areas. Seneca Resources Company, LLC, Cabot Oil & Gas Corporation and UGI Utilities have executed binding, 15-year commitments for 100 percent of such capacity.
“The Leidy South project will allow Williams to continue to grow our strategic footprint in the gas-rich Marcellus region, creating a unique opportunity to expand Transco by leveraging recent expansions on Williams’ Northeast Gathering & Processing assets in Pennsylvania,” said Micheal Dunn, chief operating 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.
Dunn added, “Pennsylvania is the second-largest natural gas producing state in the U.S., producing a record 6 trillion cubic feet of gas in 2018. While Pennsylvania produces record volumes of natural gas, pipeline infrastructure constraints continue to limit consumer access to the state’s supplies. Our Leidy South project will help ease natural gas supply constraints, creating enough additional pipeline capacity to serve approximately 2.5 million homes and enabling power plants to convert from coal to cleaner-burning natural gas.”
The certificate application reflects an expected capital cost of $531 million and a target in-service of Dec. 1, 2021.
According to third-party researchers, construction of the Leidy South Project’s two greenfield compressor facilities is estimated to generate $100 million in economic activity within Pennsylvania, supporting 750 jobs with combined earnings of $28 million, and produce $1.3 million in state tax revenue.
Transco delivers natural gas to customers through its 10,000-mile pipeline network whose mainline extends nearly 1,800 miles between South Texas and New York City. The system is a major provider of cost-effective 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.