Williams Partners LP’s Transco natural gas pipeline has filed at FERC to expand a compressor station and provide additional firm transportation capacity to growing markets in the Southeast United States by spring 2015.

The Mobile Bay South III Expansion Project is designed to provide 225,000 Dth/d of firm service on the Transco Mobile Bay Lateral from the Station 85 4A Pooling Point and other receipt points at Transco’s Station 85 in Choctaw County, AL, to interconnections with Florida Gas Transmission and Bay Gas Storage in Mobile County, AL.

Transco said it has executed binding precedent agreements with Southern Company Services Inc. and PowerSouth Energy Cooperative for 100% of the 225,000 Dth/day incremental firm transportation service.

“In creating additional southbound flow capability on the Mobile Bay Lateral, the project will expand the flexibility and utilization of the lateral,” Transco said in its filing. “The project will provide access to third-party storage facilities along the Mobile Bay Lateral and to expanding markets in southern Alabama and Florida, with no impact on service provided to existing customers.

“While the Mobile Bay Lateral is also used to transport offshore Alabama gas supplies to Transco’s mainline, there has been significant development of pipeline infrastructure to transport supplies from the Barnett Shale and other Midcontinent production regions to markets further east. The Station 85 Receipt Points provide access to approximately 3 Bcf/d of incremental gas supplies from those regions.”

The expansion would involve adding compression power at Transco Compressor Station 85 in Choctaw County, along with upgrades at existing facilities in Washington and Mobile counties in Alabama. With Federal Energy Regulatory Commission (FERC) approval, construction could begin in spring 2014. The capital cost of the project is estimated to be $50 million.

“Growing power generation demand has dramatically increased utilization of Transco’s Mobile Bay Lateral in recent years,” said Frank Ferazzi, Transco system general manager. “Our proposed Mobile Bay South III expansion is an efficient way to move additional supply from a well-positioned compressor station in Choctaw County, AL. to a number of regional storage facilities to growing Southeastern markets.”

Transco is a 10,200-mile system that provides gas transportation and storage for markets throughout the northeastern and southeastern United States. Major markets include New York City, Philadelphia, Washington, DC, and Atlanta.

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