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Released November 06, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Midstream operator Williams Companies Incorporated (NYSE:WMB) (Tulsa, Oklahoma) appears to be holding its own, despite what Chief Executive Officer Alan Armstrong is calling a "challenging commodity price environment for natural gas and NGLs" [natural gas liquids]." The company reported third-quarter 2019 net income of $220 million, up from $129 million in the year-prior quarter and, while facing some headwinds, is making progress on the expansion of its Transcontinental (Transco) natural gas pipeline system and other projects.
In last week's third-quarter earnings conference call, Armstrong said the company's growth capital expenditures could easily come in "under the low end" of its $2.3 billion to $2.5 billion guidance range. Armstrong also gave updates on the company's progress on projects in the just-passed quarter.
Among the projects completed in the quarter was the Rivervale South-to-Market project, which Armstrong said was put into service ahead of schedule. The project is an expansion of the Transco system that will bring 190 million cubic feet per day of natural gas to additional customers in New York City and New Jersey, where gas-transport infrastructure is lacking. Construction on the project began earlier this year, with Tetra Tech Incorporated (NASDAQ:TTEK) (Pasadena, California) and GAI Consultants (Jackson, Michigan) acting as consultants. For more information, see Industrial Info's project report.
While the New York City-New Jersey area is desperate for additional natural gas transport infrastructure, Williams is facing continued headwinds on another of its Transco projects in the region: the Northeast Supply Enhancement project, which will carry gas from Pennsylvania to the area. The project has had consistent rejections for water-quality permits from New Jersey. However, Williams continues to present the project to authorities.
"We are still awaiting the state water quality certification permits required for the project from both the New York DEC [Department of Environmental Conservation] and the New Jersey DEP [Department of Environmental Protection]," Armstrong said. "At this point, the risk to our targeted in-service date is increasing, although we are going to do everything we can to meet our targeted in-service date for the fourth quarter of 2020. It is quite challenging to bring the onshore compression facility--a portion of the project which is there in New Jersey--really challenging to get that done within a year's time frame, and that is the current critical path that will be up against."
Armstrong said the project could still feasibly be in service for the 2020-2021 winter heating season. The pipeline will carry 400 million cubic feet per day. For more information, see Industrial Info's project reports on the Quarryville Loop in Pennsylvania, and the Raritan Bay and Madison loops in New Jersey.
In other parts of the country, Williams' Transco projects are running smoother, including its Southeastern Trail expansion project, which will provide additional natural gas to customers in Virginia, North Carolina, South Carolina and Georgia. In October, Williams received approval for the project from the U.S. Federal Regulatory Commission (FERC).
"The Southeastern Trail project adds about 295 million cubic feet per day to the Transco pipeline system, and this is designed to serve growing markets in both the Mid-Atlantic and Southeastern states by November of 2020," Armstrong said. Construction is expected to begin by the end of this year. Click here for a list of associated loops and compressor station projects.
In Alabama, Williams is at work on its Hillabee expansion, which will supply natural gas to the Sabal Trail Pipeline. The project was approved by FERC in early 2016 and is being constructed in three phases, of which Williams is at work on Phase II. The expansion will allow for the transport of up to 1 billion cubic feet per day of natural gas. The project is expected to be completed by 2021. For more information, see Industrial Info's project reports on the Verbena Loop, Rock Springs Loop, Autauga Loop and Butler Loop.
Outside of the Transco system, Williams expects to have permitting complete early next year for its proposed Bluestem NGL pipeline from Kansas to Oklahoma. The 188-mile pipeline will be designed to transport 120,000 barrels per day (BBL/d), expandable to 225,000 BBL/d. Williams hopes to begin construction in first-quarter 2020 and is targeting an in-service date of first-quarter 2021. For more information, see Industrial Info's project reports on the Kansas and Oklahoma portions.
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 last week's third-quarter earnings conference call, Armstrong said the company's growth capital expenditures could easily come in "under the low end" of its $2.3 billion to $2.5 billion guidance range. Armstrong also gave updates on the company's progress on projects in the just-passed quarter.
Among the projects completed in the quarter was the Rivervale South-to-Market project, which Armstrong said was put into service ahead of schedule. The project is an expansion of the Transco system that will bring 190 million cubic feet per day of natural gas to additional customers in New York City and New Jersey, where gas-transport infrastructure is lacking. Construction on the project began earlier this year, with Tetra Tech Incorporated (NASDAQ:TTEK) (Pasadena, California) and GAI Consultants (Jackson, Michigan) acting as consultants. For more information, see Industrial Info's project report.
While the New York City-New Jersey area is desperate for additional natural gas transport infrastructure, Williams is facing continued headwinds on another of its Transco projects in the region: the Northeast Supply Enhancement project, which will carry gas from Pennsylvania to the area. The project has had consistent rejections for water-quality permits from New Jersey. However, Williams continues to present the project to authorities.
"We are still awaiting the state water quality certification permits required for the project from both the New York DEC [Department of Environmental Conservation] and the New Jersey DEP [Department of Environmental Protection]," Armstrong said. "At this point, the risk to our targeted in-service date is increasing, although we are going to do everything we can to meet our targeted in-service date for the fourth quarter of 2020. It is quite challenging to bring the onshore compression facility--a portion of the project which is there in New Jersey--really challenging to get that done within a year's time frame, and that is the current critical path that will be up against."
Armstrong said the project could still feasibly be in service for the 2020-2021 winter heating season. The pipeline will carry 400 million cubic feet per day. For more information, see Industrial Info's project reports on the Quarryville Loop in Pennsylvania, and the Raritan Bay and Madison loops in New Jersey.
In other parts of the country, Williams' Transco projects are running smoother, including its Southeastern Trail expansion project, which will provide additional natural gas to customers in Virginia, North Carolina, South Carolina and Georgia. In October, Williams received approval for the project from the U.S. Federal Regulatory Commission (FERC).
"The Southeastern Trail project adds about 295 million cubic feet per day to the Transco pipeline system, and this is designed to serve growing markets in both the Mid-Atlantic and Southeastern states by November of 2020," Armstrong said. Construction is expected to begin by the end of this year. Click here for a list of associated loops and compressor station projects.
In Alabama, Williams is at work on its Hillabee expansion, which will supply natural gas to the Sabal Trail Pipeline. The project was approved by FERC in early 2016 and is being constructed in three phases, of which Williams is at work on Phase II. The expansion will allow for the transport of up to 1 billion cubic feet per day of natural gas. The project is expected to be completed by 2021. For more information, see Industrial Info's project reports on the Verbena Loop, Rock Springs Loop, Autauga Loop and Butler Loop.
Outside of the Transco system, Williams expects to have permitting complete early next year for its proposed Bluestem NGL pipeline from Kansas to Oklahoma. The 188-mile pipeline will be designed to transport 120,000 barrels per day (BBL/d), expandable to 225,000 BBL/d. Williams hopes to begin construction in first-quarter 2020 and is targeting an in-service date of first-quarter 2021. For more information, see Industrial Info's project reports on the Kansas and Oklahoma portions.
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.
