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Released August 12, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) wants to expand its Transcontinental (Transco) natural gas pipeline system, the largest natural gas system in the U.S., particularly in the transmission-starved northeastern U.S. However, the company is facing permitting and regulatory headwinds in the region. Despite the pushback, Williams is progressing with its planned projects. Industrial Info is tracking more than $2.8 billion in active Williams projects.
Click on the image at right for a breakdown by market region of active Williams Companies projects.
In the company's second-quarter earnings conference call, Chief Executive Officer Alan Armstrong gave an update on some of the company's planned expansions on its Transco system, among them the Northeast Supply Enhancement project, which would carry natural gas from Pennsylvania to the New York City area. The project would supply gas utility National Grid plc (NYSE:NGG) (London, England), which in May announced that it would not be able to process new service requests in Brooklyn, Queens and Long Island due to a lack of gas supply.
In May, New York regulators denied permission to the project, which includes about 23 miles of submarine pipeline off New York City's coast, citing concerns about water quality and aquatic life. In June, New Jersey's Department of Environmental Protection rejected permits, including those for waterfront development and wetlands work. Despite these setbacks, Williams is keeping at the project, which it says is critical to supply the region with natural gas. Armstrong said that this quarter, both states had accepted Williams' reapplication permits. "Obtaining both of these 401 certifications is essential to begin construction this fall in order to meet the project in-service date," said Armstrong. "We fully expect a positive decision will come in time for us to maintain our in-service date just ahead of the 2020-2021 winter peaks." For more information, see Industrial Info's project reports on the Madison Loop, the Raritan Bay Loop and the Quarryville Loop.
However, Williams project activity in the region is not without some bright spots. Armstrong said, "We received permission in June to place a portion of the Rivervale South-to-Market project into early service. This project is a Transco expansion of 190 million cubic feet per day to service additional customers in New Jersey and New York City. The facilities required to provide 140 million cubic feet per day have already been completed, and the remaining facilities are ahead of schedule, targeting the September in-service date, two months ahead of schedule." For more information, see Industrial Info's project reports on the main section and the Bergen Loop.
The company is making progress with other forward-looking Transco projects. Armstrong said, "We recently applied for a FERC [Federal Energy Regulatory Commission] certificate for our Leidy South project. As a reminder, Leidy South is a proposed 580 million-cubic-foot-per-day expansion of Williams' existing Pennsylvania infrastructure that will further connect Appalachian gas with growing demand centers along the Atlantic Seaboard in time for the 2021-2022 heating season."
The Leidy South expansion includes a loop replacement, grassroot compressor stations, and modifications and uprates of existing stations. Williams plans to start construction on the project in early 2021. For more information, see Industrial Info's project reports on:
In other regions, Williams is at work on its Hillabee Phase II expansion project in Alabama, which Armstrong said is ahead of schedule. The project includes work on existing compressor stations and two pipeline loops. Construction began earlier this year, and Williams is targeting an in-service date in the first half of 2020. For more information, see Industrial Info's project reports on the Rock Springs Loop and the Verbena Loop. A third phase is planned to follow.
Williams reported second-quarter 2019 net income of $310 million, compared with $135 million the year-prior quarter.
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.
Click on the image at right for a breakdown by market region of active Williams Companies projects.In the company's second-quarter earnings conference call, Chief Executive Officer Alan Armstrong gave an update on some of the company's planned expansions on its Transco system, among them the Northeast Supply Enhancement project, which would carry natural gas from Pennsylvania to the New York City area. The project would supply gas utility National Grid plc (NYSE:NGG) (London, England), which in May announced that it would not be able to process new service requests in Brooklyn, Queens and Long Island due to a lack of gas supply.
In May, New York regulators denied permission to the project, which includes about 23 miles of submarine pipeline off New York City's coast, citing concerns about water quality and aquatic life. In June, New Jersey's Department of Environmental Protection rejected permits, including those for waterfront development and wetlands work. Despite these setbacks, Williams is keeping at the project, which it says is critical to supply the region with natural gas. Armstrong said that this quarter, both states had accepted Williams' reapplication permits. "Obtaining both of these 401 certifications is essential to begin construction this fall in order to meet the project in-service date," said Armstrong. "We fully expect a positive decision will come in time for us to maintain our in-service date just ahead of the 2020-2021 winter peaks." For more information, see Industrial Info's project reports on the Madison Loop, the Raritan Bay Loop and the Quarryville Loop.
However, Williams project activity in the region is not without some bright spots. Armstrong said, "We received permission in June to place a portion of the Rivervale South-to-Market project into early service. This project is a Transco expansion of 190 million cubic feet per day to service additional customers in New Jersey and New York City. The facilities required to provide 140 million cubic feet per day have already been completed, and the remaining facilities are ahead of schedule, targeting the September in-service date, two months ahead of schedule." For more information, see Industrial Info's project reports on the main section and the Bergen Loop.
The company is making progress with other forward-looking Transco projects. Armstrong said, "We recently applied for a FERC [Federal Energy Regulatory Commission] certificate for our Leidy South project. As a reminder, Leidy South is a proposed 580 million-cubic-foot-per-day expansion of Williams' existing Pennsylvania infrastructure that will further connect Appalachian gas with growing demand centers along the Atlantic Seaboard in time for the 2021-2022 heating season."
The Leidy South expansion includes a loop replacement, grassroot compressor stations, and modifications and uprates of existing stations. Williams plans to start construction on the project in early 2021. For more information, see Industrial Info's project reports on:
- the grassroot compressor station near Wapwallopen, Pennsylvania
- the grassroot compressor station near Tremont, Pennsylvania
- the loop replacement near Benton, Pennsylvania
- the compressor units near Montrose, Pennsylvania
- the modifications and turbine addition at the compressor station near Bloomsburg, Pennsylvania
In other regions, Williams is at work on its Hillabee Phase II expansion project in Alabama, which Armstrong said is ahead of schedule. The project includes work on existing compressor stations and two pipeline loops. Construction began earlier this year, and Williams is targeting an in-service date in the first half of 2020. For more information, see Industrial Info's project reports on the Rock Springs Loop and the Verbena Loop. A third phase is planned to follow.
Williams reported second-quarter 2019 net income of $310 million, compared with $135 million the year-prior quarter.
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.
