Seneca, Cabot sign takeaway capacity deals on Leidy South expansion

Oct. 9, 2018
Williams’s Transco interstate pipeline executed binding, 15-year commitments with Seneca Resources Co. LLC and Cabot Oil & Gas Corp. for 100% of the 580 million dekatherms of firm transportation capacity under its proposed Leidy South expansion project designed to expand Marcellus and Utica takeaway capacity.

Williams’s Transco interstate pipeline executed binding, 15-year commitments with Seneca Resources Co. LLC and Cabot Oil & Gas Corp. for 100% of the 580 million dekatherms of firm transportation capacity under its proposed Leidy South expansion project designed to expand Marcellus and Utica takeaway capacity.

The Leidy South project will consist of compression and looping of existing Transco facilities in Pennsylvania. The project also will include two lease agreements—one with National Fuel Gas Supply Corp. from Leidy Hub to Clermont, Pa., and a second with Meade Pipeline Co. from Zick to River Road on the Central Penn Line.

Cabot entered into a binding agreement for 250,000 MMbtu/d of transportation capacity and will also participate as an equity owner through its ownership in the Meade Pipeline Co.

“Since 2013 the Transco pipeline’s design capacity has grown by 62%, while its Marcellus takeaway capacity has increased by 3 bcfd,” said Frank Ferazzi, senior vice-president of Williams’ Atlantic-Gulf operating area.

The project could be in service as early as fourth-quarter 2021 pending receipt of regulatory approval, Williams said. It plans to submit a request this month to commence the prefiling process with the US Federal Energy Regulatory Commission.