Williams has announced that Transco has filed an application with the Federal Energy Regulatory Commission (FERC) for its Dalton Expansion Project, which would help provide Marcellus shale gas to the Southeast for electricity generation and local natural gas distribution.
Transco has established agreements with shippers for 100% of the 448,000 dekatherms of firm transportation capacity to be created under the Dalton Expansion Project. The project will consist of an expansion of Transco’s mainline from its Station 210 in New Jersey to points as far south as Holmesville, Mississippi, and a new 111-mi. lateral pipeline from Transco’s Station 115 to Murray County, Georgia. Also included in the expansion is a new compressor facility in Carroll County, Georgia, as well as three new metering facilities and other related pipe and valve modifications to existing facilities.
“As long-term demand for natural gas continues to grow, particularly in the power-generation sector, we’re executing a series of large-scale, integrated projects like the Dalton Expansion that move surging supplies in the northeast to high-value markets along the eastern seaboard and in the southeast,” said Rory Miller, senior VP of Williams’ Atlantic-Gulf operating area. “These projects create the durable, fee-based revenues that represent the vast majority of our business. Over the next three years, 99% of Williams Partners’ planned US$9 billion of growth capital is going toward fully-contracted, fee-based projects.”
To fund the lateral pipeline portion of the project, Transco and Dogwood Enterprise Holdings (Dogwood) have entered into an ownership arrangement whereby each party will hold a 50% undivided joint ownership interest in the lateral pipeline in Georgia. Under the proposal, Dogwood will lease its ownership interest in the lateral to Transco. Transco’s net investment in the project is expected to be approximately $275 million.
Williams and AGL Resources initially disclosed their intent to develop the project in March 2014. Construction is planned to begin in the third quarter of 2016 with completion targeted for 2017, subject to all necessary or required approvals by regulatory bodies, including the FERC.
Image from Williams