Cabot, Williams sign agreements for Constitution Pipeline

Constitution Pipeline Co. LLC, a joint venture of Williams Partners LP and Cabot Oil & Gas Corp., signed shipping agreements for a proposed 121-mile pipeline connecting natural gas production in northeastern Pennsylvania with the US Northeast by second-quarter 2015. Cabot has committed to transport 500 MMcfd, while Southwestern Energy Services Co., a subsidiary of Southwestern Energy Co., agreed to transport 150 MMcfd, for a total capacity of 650 MMcfd.

Constitution Pipeline will connect Williams Partners’ gathering system in Susquehanna County, Pa., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY. Williams has described the Constitution Pipeline, together with its acquisition of the Laser Northeast Gathering System, as key steps in its strategy to create a 3-bcfd Susquehanna Supply Hub in northeastern Pennsylvania (OGJ Online, Feb. 21, 2012).

Constitution expects to file for US Federal Energy Regulatory Commission approval of the project in early 2013 and has requested FERC begin a prefiling environmental review of the project.

Williams Partners will own 75% of Constitution Pipeline and, through its affiliates, will build, operate, and maintain it. Cabot will own the remaining 25%. Tulsa-based Williams Cos. Inc. owns 69% of Williams Partners.

Contact Christopher E. Smith at chriss@ogjonline.com.

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