Williams Files Fully Subscribed Sundance at FERC
Williams' gas pipeline unit filed an application with FERC to
construct and operate the Sundance expansion project last week.
Williams hopes the proposed addition to the Transco mainline, which
is already fully subscribed, will be a vital fuel line for the
booming Southeast power generation industry.
The project is designed to lengthen the Transco mainline and
provide an additional 236,383 Dth/d of firm transportation capacity
to an area that Williams believes is ripe for major energy growth.
Transco hopes to gain FERC certification by the summer of next
Approximately 38 miles of new pipeline along the company's
existing mainline system will be installed along with modifications
to existing compressor stations in Alabama, Georgia and North
Carolina, according to the project plans. The $134 million project
will go in service in the spring of 2002.
"Robust economic growth in the southeast, and the subsequent
development of gas-fired power generation facilities, is driving
this expansion of our pipeline system," said Gary D. Lauderdale,
senior vice president and general manager of Transco. "By expanding
our existing system, we can provide additional natural gas
transmission capacity to new power developers and traditional
end-users at a competitive price in time to meet the market
Paula Delaney, a spokeswoman for Transco, said Sundance is fully
subscribed with firm transportation contracts. In agreements
announced last week, Transco said Southern Co. and Carolina Power
and Light (CP&L) have agreed to purchase most of the capacity
on the line.
Southern said it purchased 140,000 Dth/d from the Sundance
expansion to serve its growing power generation portfolio in the
Southeast. "With this agreement, we have secured the means to
provide reliable, low-cost energy to our customers for many years
to come," said Charles McCrary, president of Southern Co.'s
Generation, the business unit responsible for developing and
operating Southern Co.'s non-nuclear generating plants in the
Southeast. "As we are growing to serve the needs of our customers,
we're developing a number of clean, efficient, combined-cycle units
across the Southeast."
CP&L signed up for 75 MMcf/d for the same reasons. It plans
to construct facilities and generate 7,000 MW in the region by
2010. That total includes plans to build up to seven combustion
turbine generators at sites in Richmond and Rowan counties to be
operational in 2001 and 2002.
To serve those markets, CP&L is planning to build a $100
million 82-mile intrastate lateral between Iredell and Richmond
counties which would originate from the Sundance expansion. The
30-inch-diameter pipeline would have an initial capacity of 200
MMcf/d with a total capability of 700 MMcf/d. It is scheduled to be
completed during the spring of 2001 to coincide with the start-up
of the Richmond County power plant.
CP&L's pipeline, announced last December (see NGI
Dec. 20), replaced a joint venture project between CP&L and Sonat
called the Palmetto Pipeline. While Transco and Scana were able to stymie
Palmetto with protests at FERC, CP&L's new project is an intrastate line
and does not require FERC or state commission approval. Hughes said the environmental
approvals needed for the lateral are progressing as planned but it's still
very early in the process.