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Dominion, Williams Partner to Pipe Gas from REX Terminus

August 17, 2009
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Williams and Dominion are joining forces to develop the Keystone Connector pipeline, designed to carry up to 1 Bcf/d from the Rockies Express Pipeline (REX) terminus in Ohio to eastern and Mid-Atlantic markets. Under the proposal announced last week, the sponsors want to place the 240-mile pipeline into service by 2013.

The proposed pipeline would extend from Clarington, OH, to Williams' Transcontinental Gas Pipe Line (Transco) Station 195 in southeastern Pennsylvania. Williams and Dominion would work with potential shippers to determine the level of interest in the proposal.

"Williams and Dominion are uniquely positioned to offer producers year-round access to growing East Coast markets while providing market area customers increased domestic supply alternatives," the sponsors said.

Williams, through its Rockies Connector project, and Dominion, through its Keystone project, said they had worked independently over the past two years on various proposals to the Northeast markets with Rockies and growing Marcellus Shale gas supplies.

After holding open seasons in 2007, Williams last year said it would combine its Rockies Connector and Northeast Connector projects into the Northeast Supply Project to move gas from Clarington to various delivery points in Transco's Zone 6 (see NGI, May 12, 2008).

Meanwhile, an open season for Dominion's original Keystone pipeline was launched last year. The pipe was to transport up to 1 Bcf/d from southwestern Pennsylvania, the heart of the Marcellus Shale, to East Coast markets (see NGI, July 7, 2008). The pipeline was to carry gas to Chester County, PA, for delivery to eastern markets through pipes operated by Dominion, Spectra, Williams and NiSource.

The new Keystone proposal, said the sponsors, leverages the operators' assets across the region and creates a "logical" gateway to connect emerging gas supplies with the market.

For information contact Transco's Jim Moore at (713) 215-3081 or Dominion's Jeff Keister at (804) 771-4459.

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