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Released February 18, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Williams Companies (NYSE:WMB) (Tulsa, Oklahoma) has plenty of good reason to celebrate last quarter's completion of its Atlantic Sunrise natural gas pipeline expansion: The 2.7 billion-cubic-foot-per-day project drove increased volumes and revenues, with quarterly volumes in the northeast alone rising 13% when compared with the same period in 2017. Williams is boosting its projected capital spending for 2019, as slightly delayed projects near their kickoffs. Industrial Info is tracking more than $2.7 billion in active projects involving Williams, roughly 25% of which is attributed to projects under construction.
Click on the image at right for a graph detailing active Williams projects, by industry sector.
The company's Transcontinental Gas Pipeline (Transco) system delivered a daily record of 15.7 billion cubic feet of natural gas on January 21, aided by recently completed expansions such as the 460 million-cubic-foot-per-day Gulf Connector project, which broadened the flow of natural gas from the Marcellus Shale to a liquefied natural gas (LNG) export terminal on the Texas Gulf Coast.
To further develop the Transco system, Williams is weighing the proposed Bluebonnet Express Pipeline Project in Texas, which would run roughly 500 miles from the Waha Supply Hub in the Permian Basin to Katy, a city near Houston. The 2 billion cubic feet per day of natural gas would then enter Transco's Zone 2 mainline, which covers the northern half of the Texas Gulf Coast. For more information, see Industrial Info's project report.
Williams also is considering five compressor stations, each valued at $45 million, that would support the Bluebonnet project if it is approved. For more information, see Industrial Info's project reports for the stations near Kerrville, Fort Stockton, Ozona, Seguin and Katy.
The company increased its capital spending (capex) guidance for 2019 to between $2.7 billion and $2.9 billion, compared with an earlier forecast of $2.6 billion. "Our growth capex spending came in about $300 million under guidance [for last year], and that was primarily driven by shifts of capital out of 2018 and now into 2019," said Alan Armstrong, the chief executive officer of Williams, in an earnings-related conference call. "So when we get to our 2019 guidance, you'll see an uptick, which was just the timing of that $300 million moving from 2018 to 2019."
Other areas targeted for growth include Colorado's Denver-Julesburg (DJ) Basin. Williams is at work on the $120 million natural gas-processing plant in Keenesburg, Colorado, which kicked off construction earlier this year and is set to wrap up in September, and is evaluating a proposed, $120 million second phase. Each phase would process 200 million standard cubic feet per day from the DJ Basin. For more information, see Industrial Info's project reports on Phase I and Phase II.
"We continue to exercise capital discipline, passing up many opportunities, but executing on others--like our entry into the DJ Basin, which was funded through our exit from our legacy Four Corners position," Armstrong said in the conference call. Williams sold the Four Corners Area business, which covered areas in New Mexico and Colorado, to Harvest Midstream Company for $1.125 billion in October.
Williams also is party to ONEOK Incorporated's (NYSE:OKE) (Tulsa, Oklahoma) proposed, $250 million Kansas segment of the Elk Creek NGL Pipeline, which is designed to run 900 miles from ONEOK's Riverview Terminal in eastern Montana to a terminal in Bushton, Kansas. The project is partly intended to relieve pressure on ONEOK's Bakken NGL and Overland Pass pipelines, which are at capacity. Overland Pass is co-owned by ONEOK and Williams. For more information, see Industrial Info's project report.
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 graph detailing active Williams projects, by industry sector.The company's Transcontinental Gas Pipeline (Transco) system delivered a daily record of 15.7 billion cubic feet of natural gas on January 21, aided by recently completed expansions such as the 460 million-cubic-foot-per-day Gulf Connector project, which broadened the flow of natural gas from the Marcellus Shale to a liquefied natural gas (LNG) export terminal on the Texas Gulf Coast.
To further develop the Transco system, Williams is weighing the proposed Bluebonnet Express Pipeline Project in Texas, which would run roughly 500 miles from the Waha Supply Hub in the Permian Basin to Katy, a city near Houston. The 2 billion cubic feet per day of natural gas would then enter Transco's Zone 2 mainline, which covers the northern half of the Texas Gulf Coast. For more information, see Industrial Info's project report.
Williams also is considering five compressor stations, each valued at $45 million, that would support the Bluebonnet project if it is approved. For more information, see Industrial Info's project reports for the stations near Kerrville, Fort Stockton, Ozona, Seguin and Katy.
The company increased its capital spending (capex) guidance for 2019 to between $2.7 billion and $2.9 billion, compared with an earlier forecast of $2.6 billion. "Our growth capex spending came in about $300 million under guidance [for last year], and that was primarily driven by shifts of capital out of 2018 and now into 2019," said Alan Armstrong, the chief executive officer of Williams, in an earnings-related conference call. "So when we get to our 2019 guidance, you'll see an uptick, which was just the timing of that $300 million moving from 2018 to 2019."
Other areas targeted for growth include Colorado's Denver-Julesburg (DJ) Basin. Williams is at work on the $120 million natural gas-processing plant in Keenesburg, Colorado, which kicked off construction earlier this year and is set to wrap up in September, and is evaluating a proposed, $120 million second phase. Each phase would process 200 million standard cubic feet per day from the DJ Basin. For more information, see Industrial Info's project reports on Phase I and Phase II.
"We continue to exercise capital discipline, passing up many opportunities, but executing on others--like our entry into the DJ Basin, which was funded through our exit from our legacy Four Corners position," Armstrong said in the conference call. Williams sold the Four Corners Area business, which covered areas in New Mexico and Colorado, to Harvest Midstream Company for $1.125 billion in October.
Williams also is party to ONEOK Incorporated's (NYSE:OKE) (Tulsa, Oklahoma) proposed, $250 million Kansas segment of the Elk Creek NGL Pipeline, which is designed to run 900 miles from ONEOK's Riverview Terminal in eastern Montana to a terminal in Bushton, Kansas. The project is partly intended to relieve pressure on ONEOK's Bakken NGL and Overland Pass pipelines, which are at capacity. Overland Pass is co-owned by ONEOK and Williams. For more information, see Industrial Info's project report.
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/.
