Cabot secures Transco natural gas pipeline space, sales to WGL

Cabot Oil & Gas Corp. executed a 500-MMcfd gas sale and purchase agreement with a subsidiary of WGL Holdings and a binding precedent agreement with Transcontinental Gas Pipe Line Co. LLC (Transco) for a new pipeline with committed takeaway capacity from Cabot's acreage in Susquehanna County, Pa. 

The WGL agreement will take effect when Transco’s Atlantic Sunrise expansion enters service, currently scheduled for second-half 2017. The agreement with Transco will allow it to build and operate roughly 177 miles of new pipeline, the Central Penn Line, from the Zick area of Susquehanna County to an interconnect with Transco's mainline in Lancaster County, Pa., as part of Atlantic Sunrise. Cabot will own 850 MMcfd of firm capacity on Atlantic Sunrise and will also be an equity owner.

The combined agreements pave the way for Cabot’s shipment of 350 MMcfd to Dominion Cove Point LNG to fulfill a 20-year supply agreement with Pacific Summit Energy, a wholly owned subsidiary of Sumitomo Corp.

The US Department of Energy in September approved up to 770 MMcfd of exports from Cove Point for 20 years to countries that do not have free-trade agreements (FTA) with the US. Cove Point received clearance to export to FTA countries in 2011.

Related Articles

ETP unit gets FERC approval for gas exports to Mexico

03/21/2014 Energy Transfer Partners LP unit Houston Pipe Line Co. LP (HLPC) has received approval from the US Federal Energy Regulatory Commission to build a ...

Millennium Pipeline appoints president

03/20/2014 Millennium Pipeline Co. LLC has selected Joseph Shields as its president. He succeeds Rocco D’Alessandro, who held the position beginning in May 20...

Shah Deniz II, South Caucasus Pipeline contracts awarded

03/20/2014 The Shah Deniz and South Caucasus Pipeline consortia awarded project management and construction contracts for the development of Shah Deniz Stage ...

MARKET WATCH: NYMEX crude prices rise on Seaway pipeline expansion news

03/19/2014 Crude oil futures prices rose on the New York market Mar. 18 after Enterprise Products Partners LP told analysts and investors that an expanded Sea...

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!


Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected