Prompted by the approval earlier this year of the construction of a nearby liquefied natural gas (LNG) import terminal, a unit of Williams said Friday that it is conducting a binding open season until Sept. 7 for an expansion of its Transco natural gas pipeline system in Mississippi.

The expansion is designed to connect Williams’ Transco pipeline with the recently authorized 1.5 Bcf/d Gulf LNG Clean Energy import terminal located near Pascagoula, MS (see Daily GPI, Feb. 16). Known as the Pascagoula Expansion Project, the pipe extension will provide approximately 467,000 Dth/d of firm transportation service from the import terminal facilities to Transco’s Station 85 pool located in Butler County, AL.

Gulf LNG Energy LLC’s $450 million LNG terminal would also include two storage tanks with capacity for 320,000 cubic meters of LNG.

The capacity offered in the open season will be made available through the combination of a new 15-mile pipeline (connecting the Clean Energy terminal facilities to the Transco Mobile Bay Lateral) and existing firm transportation capacity on the Mobile Bay Lateral. The connecting pipeline is being jointly developed by Williams and Florida Gas Transmission (FGT) with each party holding an undivided interest. FGT’s capacity on the Pascagoula supply line is being offered by FGT.

“This project will directly attach the Transco system to a substantial source of regasified LNG, further increasing our shippers’ supply options,” said Phil Wright, president of Williams’ natural gas pipeline business. “The new supply will optimize the existing Mobile Bay Lateral and, as a result, increase the amount of gas available at our Station 85 pool.”

Williams said it anticipates that the project will be available beginning mid to late 2011, subject to approval by the Federal Energy Regulatory Commission.

For more information, contact Gary Duvall at (713) 215-2589 or Joan Harris at (713) 215-2904.

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