Continuing gas demand growth in the Northeast along with the failure or delay of several previously proposed pipelines has left the region in serious need of new pipeline capacity. Transcontinental Gas Pipe Line said Monday the timing may be right for another expansion of its mainline and its Leidy Line from the Leidy Hub in Pennsylvania to markets in New York and New Jersey.

“Markets in the Northeast, particularly in the New York metropolitan area, continue to grow. Transco is uniquely positioned to provide the capacity and operational flexibility that the marketplace needs within the timeframe required,” said Doug Whisenant, senior vice president of Williams’ natural gas pipeline business. “This expansion project is specifically designed to address the market’s needs.”

The company is holding a 30-day open season through July 13 to gauge market interest in an expansion that would begin service in November 2007. Based on the level of capacity subscriptions from customers, Williams would expect to spend up to $180 million on the project.

The project would add 150,000 Dth/d of firm transportation capacity on the Transco pipeline system. It would have two primary paths in Transco’s Zone 6, with 100,000 Dth/d being offered from the Leidy Hub to a new delivery point in Nassau County on Long Island, and an additional 50,000 Dth/d from the Leidy Hub to Transco’s Station 210 pooling point.

Transco parent Williams said the project would require no change in the 2004 through 2006 consolidated financial guidance it provided on May 6 in its first-quarter earnings presentation.

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