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Released August 12, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Everyone knows U.S. demand for natural gas is soaring, but even pipeline developer Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) is stunned by the sheer volume of its requests. "We are seeing [gas] demand grow at an unprecedented pace," one executive said in a recent earnings call, pointing to data-center buildouts as one of the most significant driving factors. Industrial Info is tracking about $2.5 billion worth of active and proposed projects from Williams, about half of which is attributed to natural gas pipelines.
Click on the image at right for a graph detailing active and proposed Williams projects, by U.S. state.
Williams expects to spend between $1.45 billion and $1.75 billion on growth projects in 2024, with maintenance spending expected to come in at between $1.1 billion and $1.3 billion. The latter includes $350 million to reduce emissions at existing facilities.
"Our teams have executed on an extraordinary amount of strategic priorities, including placing projects into service in the Northeast, West and the Deepwater, Gulf of Mexico," said Alan Armstrong, the chief executive officer of Williams, in a recent quarterly earnings-related conference call. "Last week, we placed Transco regional energy access into full service ahead of schedule and under budget, ensuring clean and reliable natural gas is available to serve the Northeast region for the upcoming winter heating season."
Williams' Regional Energy Access (REA) project, which runs from Pennsylvania to New Jersey, is adding 829 million standard cubic feet per day to subsidiary Transcontinental Gas Pipe Line Company LLC's (Transco) system. Last month, the U.S. Federal Energy Regulatory Commission (FERC) granted Transco's request to put additional capacity into service, which would bring more gas from Northeast Pennsylvania's Appalachian gas fields to delivery points across Pennsylvania, Maryland and New Jersey.
But new barriers are rising: In late July, the U.S. Court of Appeals for the D.C. Circuit vacated FERC's January 2023 approval of the initial expansion project, saying the agency did not adequately explain why it dismissed studies concerning the project's greenhouse gas emissions and overall necessity. In a statement to Reuters, Williams said the decision "will not delay full implementation of the project."
It is unclear how the court's decision will affect several components of the REA that remain under construction but are slated to wrap up in the near term: the $130 million addition of Compressor Station 515 in Bear Creek, Pennsylvania; the $100 million addition of Compressor Station 517 in Benton, Pennsylvania; and the $90 million replacement of eight compressors at Compressor Station 505 in Neshanic Station, New Jersey. All three projects began construction in the first quarter of 2023.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed reports on the Bear Creek, Benton and Neshanic Station projects.
"We were also active on advancing construction for several key projects" during the second quarter, Armstrong said in the earnings call. "We initiated construction activities on the Louisiana Energy Gateway (LEG) gathering, treating and carbon capture project, as well as Transco's Texas to Louisiana Energy Pathway (TLEP) project, which provides our anchor shipper EOG Resources with access to the LNG corridor in higher-priced markets on the Transco Pipeline--and, specifically, all the way into the Louisiana market."
Williams continues to work on compressor-station projects to support these developments. A pair of $20 million compressor stations near DeRidder and Bethany, Louisiana, will help LEG carry up to 1.8 billion cubic feet per day of natural gas to LNG exporters on the Gulf Coast, while the $55 million Compressor Station 33 near Needville, Texas, will help TLEP transport up to 364 million cubic feet per day on Transco's IT Feeder System. Subscribers can read detailed reports on the DeRidder, Bethany and Needville projects.
For the 2025 calendar year, Williams executives say the company expects to spend between $1.65 billion and $1.95 billion on growth projects, with maintenance spending expected to come in at between $750 million and $850 million.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Williams.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
Click on the image at right for a graph detailing active and proposed Williams projects, by U.S. state.Williams expects to spend between $1.45 billion and $1.75 billion on growth projects in 2024, with maintenance spending expected to come in at between $1.1 billion and $1.3 billion. The latter includes $350 million to reduce emissions at existing facilities.
"Our teams have executed on an extraordinary amount of strategic priorities, including placing projects into service in the Northeast, West and the Deepwater, Gulf of Mexico," said Alan Armstrong, the chief executive officer of Williams, in a recent quarterly earnings-related conference call. "Last week, we placed Transco regional energy access into full service ahead of schedule and under budget, ensuring clean and reliable natural gas is available to serve the Northeast region for the upcoming winter heating season."
Williams' Regional Energy Access (REA) project, which runs from Pennsylvania to New Jersey, is adding 829 million standard cubic feet per day to subsidiary Transcontinental Gas Pipe Line Company LLC's (Transco) system. Last month, the U.S. Federal Energy Regulatory Commission (FERC) granted Transco's request to put additional capacity into service, which would bring more gas from Northeast Pennsylvania's Appalachian gas fields to delivery points across Pennsylvania, Maryland and New Jersey.
But new barriers are rising: In late July, the U.S. Court of Appeals for the D.C. Circuit vacated FERC's January 2023 approval of the initial expansion project, saying the agency did not adequately explain why it dismissed studies concerning the project's greenhouse gas emissions and overall necessity. In a statement to Reuters, Williams said the decision "will not delay full implementation of the project."
It is unclear how the court's decision will affect several components of the REA that remain under construction but are slated to wrap up in the near term: the $130 million addition of Compressor Station 515 in Bear Creek, Pennsylvania; the $100 million addition of Compressor Station 517 in Benton, Pennsylvania; and the $90 million replacement of eight compressors at Compressor Station 505 in Neshanic Station, New Jersey. All three projects began construction in the first quarter of 2023.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can read detailed reports on the Bear Creek, Benton and Neshanic Station projects.
"We were also active on advancing construction for several key projects" during the second quarter, Armstrong said in the earnings call. "We initiated construction activities on the Louisiana Energy Gateway (LEG) gathering, treating and carbon capture project, as well as Transco's Texas to Louisiana Energy Pathway (TLEP) project, which provides our anchor shipper EOG Resources with access to the LNG corridor in higher-priced markets on the Transco Pipeline--and, specifically, all the way into the Louisiana market."
Williams continues to work on compressor-station projects to support these developments. A pair of $20 million compressor stations near DeRidder and Bethany, Louisiana, will help LEG carry up to 1.8 billion cubic feet per day of natural gas to LNG exporters on the Gulf Coast, while the $55 million Compressor Station 33 near Needville, Texas, will help TLEP transport up to 364 million cubic feet per day on Transco's IT Feeder System. Subscribers can read detailed reports on the DeRidder, Bethany and Needville projects.
For the 2025 calendar year, Williams executives say the company expects to spend between $1.65 billion and $1.95 billion on growth projects, with maintenance spending expected to come in at between $750 million and $850 million.
Subscribers to Industrial Info's GMI Project and Plant databases can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.
Subscribers can click here for a full list of reports for active and planned projects from Williams.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
