Williams’ Transcontinental Gas Pipeline (Transco) said Thursday that it has placed the first phase of its $189 million Momentum pipeline expansion into service, increasing capacity on its natural gas system by approximately 269,000 Dth/d.

In February, Transco altered its plan for the project by implementing a phase-in strategy for completion of the project as well as a reduction of the pipelines total capacity from 359,000 Dth/d to the current goal of 323,000 Dth/d (see Daily GPI, Feb. 6). The first of two phases, completed on schedule, provides additional firm transportation capacity to serve markets in Alabama, Georgia and the Carolinas.

“This project is a good example of Williams meeting its commitments to customers to provide reliable, flexible, competitively-priced transportation services,” said Doug Whisenant, senior vice president of Williams’ natural gas pipeline business. “Since 1995, Transco has added over 1.1 Bcf/d of new capacity serving its customers in the Southeast, plus 461 MMcf/d to customers in the Mid-Atlantic states.”

Transco noted that construction on the first phase of the project began in August 2002, with construction on the second phase expected to begin during the spring of 2004. Phase two is expected to be in service in May 2004. Upon completion, the project will add approximately 50 miles of new pipe and 45,000 horsepower of compression to the Transco system.

Following the completion of the Texas Gas sale, Williams said its subsidiaries will own and operate approximately 14,000 miles of interstate natural gas transmission pipeline, comprised of the Transco and Northwest Pipeline systems. In mid-April, Williams reported that it had entered into a definitive deal to sell its Gulf Coast pipeline system, Texas Gas Transmission Corp., to a unit of Loews Corp. for $795 million in cash and the assumption of $250 million in debt (see Daily GPI, April 15).

In addition to the Transco and Northwest systems, Williams also has a 50% ownership in the 581-mile Gulfstream pipeline. In total, the company estimates that it transports 12% of the natural gas consumed in the United States.

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.