Williams on Tuesday executed an agreement with KeySpan Energy Delivery to begin, by November 2007, transporting 100,000 Dth/d of natural gas on its Transco pipeline from Leidy, PA to growing markets in the Northeast. A formal application is expected to be filed with FERC in September.

“Natural gas demand in the Northeast continues to climb,” said Phil Wright, senior vice president of Williams’ gas pipeline business. “As a major transporter of natural gas to the region, the Transco pipeline is well positioned to respond to this growth.” The 10,500-mile Transco system originates in the Gulf Coast region and runs up the East Coast, and it currently delivers 8.1 MMDth/d.

The Leidy-to-Long Island expansion will require looping the Transco pipeline in Pennsylvania, as well as looping and adding a natural gas compressor facility in New Jersey. The precise facility design, location and other details of the project have not yet been finalized. Based on the results of an open season and incorporating existing capacity through a reverse open season, Williams said it was able to reduce the estimated capital cost of the project to $103 million from $143 million.

In February, the Federal Energy Regulatory Commission granted Williams’ request for a pre-application environmental review of the pipeline looping project (see Daily GPI, Feb. 14).

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