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Transco's Marcellus-to-Southeast Dalton Project Filed at FERC

Williams Partners LP's Transcontinental Gas Pipeline Co. LLC (Transco) has filed at FERC for its Dalton Expansion Project, which would help move Marcellus Shale gas to the Southeast to serve power generators and local distribution companies.

A successful open season for project capacity was completed in April. Shippers signed up for 100% of the 448,000 Dth of firm capacity to be created by Dalton (see Shale Daily, April 21, 2014). The project would consist of an expansion of Transco's mainline from its Station 210 in New Jersey to points as far south as Holmesville, MS, and a new 111-mile lateral pipeline from Transco's Station 115 to Murray County, GA. Also included is a new compressor facility in Carroll County, GA, as well as three new metering facilities and other related pipe and valve modifications to existing facilities. AGL Resources Inc. has said it will help fund the Georgia lateral portion of the project [CP15-117].

"As long-term demand for natural gas continues to grow, particularly in the power generation sector, we're executing a series of large-scale, integrated projects like the Dalton Expansion that move surging supplies in the Northeast to high-value markets along the Eastern Seaboard and in the Southeast," said Rory Miller senior vice president of Williams' Atlantic-Gulf operating area.

Transco and AGL Resources' Dogwood Enterprise Holdings Inc. each will hold a 50% undivided joint ownership interest in the lateral pipeline in Georgia. Under the proposal, Dogwood Enterprises will lease its ownership interest in the lateral to Transco. Transco's net investment in the project is expected to be about $275 million.

Williams and AGL Resources announced the project in March 2014. Construction is planned to begin in the third quarter of 2016 with completion targeted for 2017.

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