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Released February 24, 2020 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Natural gas pipeline operator Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) is coming off of a good 2019. The company boosted daily natural gas gathering volumes by 5% and full-year net earnings by $1 billion in the just-passed year. Williams seems ready to continue this trend with a series of growth projects on its Transcontinental (Transco) natural gas pipeline system, the largest natural gas system in the U.S. Industrial Info is tracking more than $5.2 billion in active Williams Companies projects.
In the company's recent fourth-quarter earnings conference call with industry analysts, Chief Executive Officer Alan Armstrong discussed the progress on some of the active growth projects. Among these is the Hillabee Phase II project, an expansion of the Transco system in Alabama that will be constructed in three phases to connect with the Sabal Trail Pipeline, adding a total of approximately 1 billion cubic feet per day (Bcf/d) of capacity by 2021. Phase II kicked off early last year, and Armstrong said the work is mechanically complete and ready to go in service. Phase III is underway and is expected to be completed later this year. The project involves the construction of pipeline loops and work at compressor stations. Click here for a list of the Hillabee projects.
Much of Williams' work on Transco is taking place in the northeast in an attempt to move natural gas from production areas in Pennsylvania to places such as New Jersey and New York, where gas infrastructure is lacking. The Leidy South expansion project in Pennsylvania is designed to transport more than 580 million cubic feet per day from high-production areas to the Atlantic Seaboard. The project involves the replacement of existing pipeline, construction of loops, compressor station additions and modifications, and a compressor unit uprate. Armstrong said the project had received a favorable environmental assessment, which is a key step in the approval process of the U.S. Federal Energy Regulatory Commission (FERC). The project is expected to kick off in early 2021 and be completed by the 2021-22 winter heating season.
Also in Pennsylvania is Williams' Regional Energy Access Project, a pipeline loop addition to provide gas to delivery points in Pennsylvania and New Jersey. Armstrong said, "The Regional Energy Access project is looking more attractive as time goes on. We have a project that will be between 800 million to 1 billion cubic feet per day, and once we've settled on the appropriate size of the project, we'll move to complete the work to apply for a FERC certificate. So, we're in the final stages of tidying up contracts there with our customers." For more information, see Industrial Info's project report.
Among Williams' other projects in the region is the Northeast Supply Enhancement project, which will carry gas from Pennsylvania into New York City. The project has faced issues obtaining water quality permits from New York and New Jersey. Armstrong, however, said the company was confident the project would be completed. The project includes the construction of pipeline loops and work at compressor stations. Click here for a list of associated projects.
Problems such as those faced by Northeast Supply Enhancement could ultimately work in Williams' favor in other areas. Among other natural gas pipeline projects having trouble with permitting in the region is the grassroot PennEast Pipeline project, being built by a consortium of five companies. Click here for a list of projects. Armstrong said, "Difficulties seen by greenfield pipeline projects will also benefit Transco in the long run, as Transco is uniquely positioned to meet new capacity demand by expanding along its existing rights of way, which are irreplaceable and unmatched in terms of their proximity to demand."
Williams reported fourth-quarter 2019 net income of $138 million, compared with a loss of $572 million in the prior-year quarter. Full-year net income net income $862 million, compared with a loss of $156 million in 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In the company's recent fourth-quarter earnings conference call with industry analysts, Chief Executive Officer Alan Armstrong discussed the progress on some of the active growth projects. Among these is the Hillabee Phase II project, an expansion of the Transco system in Alabama that will be constructed in three phases to connect with the Sabal Trail Pipeline, adding a total of approximately 1 billion cubic feet per day (Bcf/d) of capacity by 2021. Phase II kicked off early last year, and Armstrong said the work is mechanically complete and ready to go in service. Phase III is underway and is expected to be completed later this year. The project involves the construction of pipeline loops and work at compressor stations. Click here for a list of the Hillabee projects.
Much of Williams' work on Transco is taking place in the northeast in an attempt to move natural gas from production areas in Pennsylvania to places such as New Jersey and New York, where gas infrastructure is lacking. The Leidy South expansion project in Pennsylvania is designed to transport more than 580 million cubic feet per day from high-production areas to the Atlantic Seaboard. The project involves the replacement of existing pipeline, construction of loops, compressor station additions and modifications, and a compressor unit uprate. Armstrong said the project had received a favorable environmental assessment, which is a key step in the approval process of the U.S. Federal Energy Regulatory Commission (FERC). The project is expected to kick off in early 2021 and be completed by the 2021-22 winter heating season.
Also in Pennsylvania is Williams' Regional Energy Access Project, a pipeline loop addition to provide gas to delivery points in Pennsylvania and New Jersey. Armstrong said, "The Regional Energy Access project is looking more attractive as time goes on. We have a project that will be between 800 million to 1 billion cubic feet per day, and once we've settled on the appropriate size of the project, we'll move to complete the work to apply for a FERC certificate. So, we're in the final stages of tidying up contracts there with our customers." For more information, see Industrial Info's project report.
Among Williams' other projects in the region is the Northeast Supply Enhancement project, which will carry gas from Pennsylvania into New York City. The project has faced issues obtaining water quality permits from New York and New Jersey. Armstrong, however, said the company was confident the project would be completed. The project includes the construction of pipeline loops and work at compressor stations. Click here for a list of associated projects.
Problems such as those faced by Northeast Supply Enhancement could ultimately work in Williams' favor in other areas. Among other natural gas pipeline projects having trouble with permitting in the region is the grassroot PennEast Pipeline project, being built by a consortium of five companies. Click here for a list of projects. Armstrong said, "Difficulties seen by greenfield pipeline projects will also benefit Transco in the long run, as Transco is uniquely positioned to meet new capacity demand by expanding along its existing rights of way, which are irreplaceable and unmatched in terms of their proximity to demand."
Williams reported fourth-quarter 2019 net income of $138 million, compared with a loss of $572 million in the prior-year quarter. Full-year net income net income $862 million, compared with a loss of $156 million in 2018.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
