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Williams Combines Two Eastern Pipeline Proposals

Responding to shippers' interest and comments, Williams' Transcontinental Gas Pipe Line Corp. (Transco) is combining its Rockies Connector and Northeast Connector projects into the Northeast Supply Project, which would provide year-round firm transportation service from Clarington, OH -- the terminus of the proposed eastern portion of the Rockies Express Pipeline LLC (REX-East) -- to various delivery points in Transco's Zone 6, it said last week.

Transco is holding a binding open season on the project, which will include:

Williams previously held a nonbinding open season for its Rockies Connector project (see NGI, Nov. 5, 2007) and Transco previously held a nonbinding open season for its Northeast Connector project (see NGI, Oct. 8, 2007). Under the original plan Northeast Connector was going to create incremental firm capacity from an interconnection with the Rockies Connector pipeline near Transco's Station 195 in southeastern Pennsylvania to delivery points in Transco's Zone 6 in the northeastern United States. Rockies Connector was to have extended approximately 250 miles, connecting Transco Station 195 in York County, PA, to the eastern terminus of REX-East.

"As a result of discussions with potential shippers, the ownership structure of the Rockies Connector project has been reevaluated such that the project will now be pursued as an expansion of Transco's pipeline system rather than being developed as a newly formed Williams entity," the company said. "Further, Transco has decided to combine the Rockies Connector and Northeast Connector projects into the proposed Northeast Supply project."

Transco said the Northeast Supply project will connect East Coast markets to gas supply from the Rockies, Appalachia and the emerging Marcellus Shale. Firm transportation service under the project is anticipated to be available as early as Nov. 1, 2011. The open season will end at 3 p.m. CDT on June 2.

Upon the close of the open season Transco will evaluate the level of shipper interest and the results from its technical feasibility study to determine whether to proceed with the project. Additional information on the project can be found at www.williams.com/NortheastSupply or by contacting Gary Duvall at (713) 215-2589 or Nancy Hargrove at (713) 215-2926.

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