Shale Daily / NGI All News Access

Pennsylvania Interstate Gas Line Secures Customers

Constitution Pipeline Co. LLC, a development launched in February by frequent partners Williams Partners LP and Cabot Oil & Gas Corp., on Tuesday executed precedent agreements for the proposed 121-mile natural gas pipeline, designed to connect Marcellus Shale production in northeastern Pennsylvania to Northeast markets by spring 2015.

Cabot, one of the biggest operators in the Marcellus Shale, agreed to transport 500,000 Dth/d on Constitution, while Southwestern Energy Services Co. (SES) said it would carry 150,000 Dth/d, for a total takeaway capacity of 650,000 Dth/d. SES is a subsidiary of Southwestern Energy Co., a major Marcellus producer.

Constitution is one spoke in a master plan by Williams, 69% owner of Williams Partners, to create a gas supply hub in northeastern Pennsylvania (see Shale Daily, Feb. 22; Dec. 5, 2011). The pipeline would connect the partnership's gathering system in Susquehanna County, PA, to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY.

Williams Partners would own 75% of the interstate pipeline, and through its affiliates would provide construction, operation and maintenance services. Cabot would own the remaining stake.

Before filing for a certificate application early next year with the Federal Energy Regulatory Commission (FERC), Constitution asked regulators to initiate a pre-filing environmental review of the pipeline proposal. The FERC pre-filing process would solicit early input from citizens, governmental entities and other interested parties to identify and address issues with potential facility locations.

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