Williams’ gas pipeline unit filed an application with FERC toconstruct and operate the Sundance expansion project last week.Williams hopes the proposed addition to the Transco mainline, whichis already fully subscribed, will be a vital fuel line for thebooming Southeast power generation industry.

The project is designed to lengthen the Transco mainline andprovide an additional 236,383 Dth/d of firm transportation capacityto an area that Williams believes is ripe for major energy growth.Transco hopes to gain FERC certification by the summer of nextyear.

Approximately 38 miles of new pipeline along the company’sexisting mainline system will be installed along with modificationsto existing compressor stations in Alabama, Georgia and NorthCarolina, according to the project plans. The $134 million projectwill go in service in the spring of 2002.

“Robust economic growth in the southeast, and the subsequentdevelopment of gas-fired power generation facilities, is drivingthis expansion of our pipeline system,” said Gary D. Lauderdale,senior vice president and general manager of Transco. “By expandingour existing system, we can provide additional natural gastransmission capacity to new power developers and traditionalend-users at a competitive price in time to meet the marketdemand.”

Paula Delaney, a spokeswoman for Transco, said Sundance is fullysubscribed with firm transportation contracts. In agreementsannounced last week, Transco said Southern Co. and Carolina Powerand Light (CP&L) have agreed to purchase most of the capacityon the line.

Southern said it purchased 140,000 Dth/d from the Sundanceexpansion to serve its growing power generation portfolio in theSoutheast. “With this agreement, we have secured the means toprovide reliable, low-cost energy to our customers for many yearsto come,” said Charles McCrary, president of Southern Co.’sGeneration, the business unit responsible for developing andoperating Southern Co.’s non-nuclear generating plants in theSoutheast. “As we are growing to serve the needs of our customers,we’re developing a number of clean, efficient, combined-cycle unitsacross the Southeast.”

CP&L signed up for 75 MMcf/d for the same reasons. It plansto construct facilities and generate 7,000 MW in the region by2010. That total includes plans to build up to seven combustionturbine generators at sites in Richmond and Rowan counties to beoperational in 2001 and 2002.

To serve those markets, CP&L is planning to build a $100million 82-mile intrastate lateral between Iredell and Richmondcounties which would originate from the Sundance expansion. The30-inch-diameter pipeline would have an initial capacity of 200MMcf/d with a total capability of 700 MMcf/d. It is scheduled to becompleted during the spring of 2001 to coincide with the start-upof the Richmond County power plant.

CP&L’s pipeline, announced last December (see NGI Dec. 20), replaced a joint venture project between CP&L and Sonat called the Palmetto Pipeline. While Transco and Scana were able to stymie Palmetto with protests at FERC, CP&L’s new project is an intrastate line and does not require FERC or state commission approval. Hughes said the environmental approvals needed for the lateral are progressing as planned but it’s still very early in the process.

John Norris

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