Williams recently announced that its Transco interstate pipeline filed an application with the Federal Energy Regulatory Commission (FERC) seeking authorization for its Leidy South project.
The project would connect supplies of natural gas in the Marcellus and Utica producing regions in Pennsylvania with markets along the Atlantic Seaboard. It is expected to be in service by the 2021-2022 winter heating season.
“Pennsylvania is the second-largest natural gas producing state in the U.S., producing a record 6 trillion cubic feet of gas in 2018,” Micheal Dunn, chief operating officer of Williams, said. “While Pennsylvania produces record volumes of natural gas, pipeline infrastructure constraints continue to limit consumer access to the state’s supplies. Our Leidy South project will help ease natural gas supply constraints, creating enough additional pipeline capacity to serve approximately 2.5 million homes and enabling power plants to convert from coal to cleaner-burning natural gas.”
Construction of the Leidy South Project’s two greenfield compressor facilities is expected to generate an estimated $100 million in economic activity within Pennsylvania, support 750 jobs with combined earnings of $28 million and produce $1.3 million in state tax revenue.
The project would expand Transco’s firm transportation capacity by 582,400 dekatherms per day from the Leidy Hub and Zick interconnect to points downstream in Transco’s Zone 5 and Zone 6 market areas. Seneca Resources Company, LLC, Cabot Oil & Gas Corporation and UGI Utilities have executed binding, 15-year commitments for 100 percent of such capacity.
“The Leidy South project will allow Williams to continue to grow our strategic footprint in the gas-rich Marcellus region, creating a unique opportunity to expand Transco by leveraging recent expansions on Williams’ Northeast Gathering & Processing assets in Pennsylvania,” Dunn said.
The project includes 6.3 miles of existing pipe replacement, 5.9 miles of new pipeline loop segments along the existing Transco pipeline corridor, horsepower additions at two existing compressor facilities and two new greenfield compressor facilities in Pennsylvania.
It also includes two lease arrangements: a capacity lease with National Fuel Gas Supply Corporation to enable the project to connect Clermont, Pennsylvania, to the Leidy Hub; and a lease of Meade Pipeline Company’s undivided ownership interest in the Central Penn Line from Zick to River Road.