Transcontinental Gas Pipe Line is holding an open season on yetanother proposed mainline expansion project designed to serve theeastern seaboard. The open season will run from Aug. 31 to Sept. 29for shippers interested in incremental annual firm transportationservice to be created by the Momentum Expansion Project.

Momentum is a proposed expansion from Station 65 in Louisiana toStation 165 in Virginia, designed to meet increasing natural gasdemand in the Southeast and Mid-Atlantic area. “The southeasternUnited States continues to experience robust growth,” said GaryLauderdale, senior vice president and general manager of Williams’Transco pipeline. “Power generation markets account for more thanhalf of the natural gas demand in the Southeast, particularlymarkets in Alabama, Georgia, the Carolinas and southern Virginia.

The project is anticipated to be in service by May 1, 2003.Williams plans to file an application with FERC in the secondquarter of 2001. The level of market commitment will determine thecost, facilities, final capacity and rates for the project.

Lauderdale said market growth in the “South Atlantic” region isabout 3% per year. “We see a more robust annual growth rate in theSouth Atlantic than you’re seeing across the nation in general. Andit is predominately higher generation load.

“I think it is safe to say [the expansion] probably will be acombination of looping along existing right of way and additionalcompression to existing stations. I wouldn’t contemplate anygreenfield-type pipelines except maybe a lateral to connect to apower plant or something like that. I would put a bracket on itbetween 250,000 and 700,000 Dth/d. It is pretty hard to tell rightnow. We probably need 250,000 Dth/d or so from an economicstandpoint.”

Transco currently is building one other mainline expansion, the204,000 Dth/d SouthCoast project, and has another on file at FERC— the 236,000 Dth/d Sundance project. It also is in the processof building the 700,000 Dth/d MarketLink project and the 125,000Dth/d Cross Bay project in the Northeast. Robust economic growthand the subsequent development of gas-fired power generationfacilities, is the main force driving all of these expansions,company officials have said.

FERC approved the SouthCoast Expansion in May. It will deliversupplies starting in November, primarily in Georgia and SouthCarolina. The 44 miles of expanded pipe primarily will serveAtlanta Gas Light, Georgia Power and a new power generation plantto be built by the South Carolina Public Service Authority (SanteeCooper). The $108 million project will increase mainline capacitybetween Station 85 in Butler, AL, to delivery points in Zone 4.

The Sundance project will include 38 miles of new pipeline alongthe company’s existing mainline system along with modifications toexisting compressor stations in Alabama, Georgia and NorthCarolina, according to the project plans. The $134 million projectwill go in service in the spring of 2002.

The $528 million MarketLink project was approved by FERC inApril and will involve construction of 152 miles of 42-inchdiameter and 36-inch diameter pipeline looping in Pennsylvania andNew Jersey, plus compression.

The company also has filed an application for the $60 millionCross Bay Pipeline project with partners Duke Energy and KeySpan.The Cross Bay will increase deliveries into the New York Citymetropolitan area.

Additional information regarding the Momentum project may beobtained by contacting Helen Laughlin at (713) 215-3773 or OrlandoAlvarado at (713) 215-3378.

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