FERC approves Williams pipeline expansion in Southeast
Oklahoma’s Williams Cos. scored another win from federal regulators who have approved an expansion of a natural gas pipeline in Virginia and North Carolina.
Critics argued against the Southeast Supply Enhancement Project (SSEP) but the Federal Energy Regulatory Commission voted to approve the project and issued a 61-page order allowing Williams to move forward.
“Transco has demonstrated a need for the project, and, further, that the project will not have adverse impacts on existing shippers or other pipelines and their existing customers, and that the project will have minimal economic impacts on landowners and surrounding communities,” regulators stated in the order.
Regulators said the expansion will relieve capacity constraints on Transco’s system and support growing demand for natural gas-fired power generation.
What the Southeast Supply Enhancement Project includes
Williams subsidiary Transcontinental Gas Pipe Line plans an addition of 55 miles of new pipeline in two segments referred to as “loops.”
One segment is known as the Eden Loop and follows the same path as Mountain Valley’s amended Southgate pipeline project. Williams’ project also includes the installation of new compressor units, reported the Pipeline and Gas Journal. Transco estimated the total project cost at approximately $1.53 billion.
Where construction will take place
The project is considered a major expansion of Transco’s existing interstate natural gas transmission system spanning Virginia, North Carolina, South Carolina, Georgia, and Alabama. The extension will allow Williams to deliver up to 1.6 million dekatherms per day of incremental firm transportation capacity to Southeast markets.
Construction will involve about 31 miles of 42-inch pipeline in Pittsylvania County, Virginia, and Rockingham County, North Carolina. Another 24 miles of the same sized pipeline will be built in three counties in North Carolina.
Why regulators say the project is needed
FERC said the expansion is designed to relieve capacity constraints on Transco’s system and support growing demand for natural gas-fired power generation, as well as residential, commercial, and industrial use. The project is fully subscribed under long-term precedent agreements, which the commission cited as strong evidence of market need.
Compressor upgrades and abandonment of older units
In addition to new pipeline segments, the project includes major compression upgrades at several existing stations, including new electric- and gas-driven units and the replacement of older equipment. Transco estimated the total project cost at approximately $1.53 billion.
The order also authorizes the abandonment of certain obsolete compressor units, which Transco plans to replace with more efficient equipment to improve system reliability. The commission found the abandonment would not jeopardize existing service.
Environmental impacts and mitigation measures
FERC staff concluded that while construction and operation would result in some environmental impacts, those effects would be reduced to less-than-significant levels with mitigation measures in place. The commission adopted staff recommendations and environmental conditions as part of its approval.
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