Transcontinental Gas Pipe Line (Transco) has filed an application at FERC to build and operate its Leidy Southeast expansion, which would supply an additional 525,000 Dth/d of capacity from its Leidy line in Pennsylvania as far south as Choctaw County, AL.
The proposed expansion would help alleviate severe capacity constraints in the Marcellus Shale while also serving the growing needs of local distribution companies along the Atlantic Seaboard. Transco has asked the Federal Energy Regulatory Commission (FERC) to act on its application by Aug. 1, 2014 so that it can place the Leidy Southeast expansion into service by Dec. 1, 2015.
The proposed Leidy Southeast project will expand the Leidy Line's currently subscribed firm transportation capacity of 1.7 million Dth/d by about 30%. It will provide firm transportation from various supply points along Transco's Leidy Line to delivery points along its mainline system as far south as Transco's existing Station 85 Zone 4 and 4A Pooling Points in Choctaw County. Environmental groups have sought to block the project (seeShale Daily, July 3).
Transco has executed binding precedent agreements with with seven companies: Capitol Energy Ventures Corp. (20,000 Dth/d), South Carolina Electric & Gas Co. (40,000 Dth/d), Anadarko Energy Services (50,000 Dth/d), MMGS Inc (50,000 Dth/d), Piedmont Natural Gas Co. (100,000 Dth/d), Public Service Company of North Carolina Inc. (100,000 Dth/d) and Washington Gas Light Co. (165,000 Dth/d).
"The project will provide firm market access to new sources of gas supply being developed in North Central Pennsylvania, which is experiencing a dramatic increase in natural gas production," Transco, a Williams pipeline subsidiary, told FERC in its application.
"Transco's natural gas pipeline system is well-positioned to transport North Central Pennsylvania production to major, high-demand markets. The project will provide reliable access to new supplies of natural gas, thus enhancing the nation's energy security. The gas transported by the project will help meet current and future demand in markets served by the project shippers as the supplies ultimately will be delivered to homes, businesses, industries, hospitals, schools and power generation plants."
The $607 million project would involve the construction of approximately 30 miles of 42-inch diameter pipe segments, called loops, in Pennsylvania and New Jersey, the net addition of 71,900 hp at four existing compressor stations, and minor modifications to meter stations and associated facilities. The pipeline loops vary in length and are expected to parallel the existing Transco system, either completely within, or adjacent to, the existing utility corridor.
The latest Transco application comes as another major expansion project on the Leidy Line nears completion. The Northeast Supply Link project expands Transco's existing system connecting the Marcellus Shale production region to the New York market by 250,000 Dth/d. Williams placed a portion of the project's capacity (125,000 Dth/d) into service in August and the remaining portion of the $390 million project is on schedule to be placed into service in November, according to Transco (see Shale Daily, Aug. 16).
The 10,200-mile Transco pipeline extends from South Texas to New York City. It is a major provider of natural gas to the northeastern and southeastern states. Its compressor stations help move gas from the Gulf Coast to 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.