Transco files FERC application for Dalton expansion project

Transcontinental Gas Pipe Line Co. LLC (Transco), a wholly owned subsidiary of Williams Partners LP, has filed an application with the US Federal Energy Regulatory Commission for its Dalton expansion project, which would transport Marcellus shale gas to the US Southeast for electric power generation and local natural gas distribution.

Transcontinental Gas Pipe Line Co. LLC (Transco), a wholly owned subsidiary of Williams Partners LP, has filed an application with the US Federal Energy Regulatory Commission for its Dalton expansion project, which would transport Marcellus shale gas to the US Southeast for electric power generation and local natural gas distribution.

Transco has executed long-term agreements with shippers for 100% of the 448,000 dth of firm transportation capacity to be created under the Dalton project. Transco held an open season for the project in mid-2012 (OGJ Online, June 1, 2012).

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, Miss., and an 111-mile lateral pipeline from Transco’s Station 115 to Murray County, Ga.

Also included in the expansion is a compressor facility in Carroll County, Ga., as well as three metering facilities and other related pipe and valve modifications to existing facilities.

To fund the lateral pipeline portion of the project, Transco and Atlanta-based AGL Resources’ Dogwood Enterprise Holdings Inc. 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 $275 million.

Williams and AGL Resources initially disclosed their intent to develop the project in March 2014. Siting and environmental studies have been under way since that time. Construction is planned to begin in third-quarter 2016 with completion targeted for 2017.

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