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Released May 16, 2019 | SUGAR LAND
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Editor's Note: This article has been updated to include more information about the status of the Northeast Supply Enhancement Project.
Researched by Industrial Info Resources (Sugar Land, Texas)--Williams Companies (NYSE:WMB) (Tulsa, Oklahoma) has trimmed its 2019 growth capital expenditure guidance by $400 million. With the new capital guidance range of $2.3 billion to $2.5 billion, the midstream energy pipeline company still has plenty of projects on its plate for 2019 and afterward.
Click on the image at right for a graph showing Williams project activity by market region as tracked by Industrial Info.
Williams is targeting lower capital expenditures for its Northwest G&P business in response to producer activity in the region, Chief Executive Officer Alan Armstrong said during the company's recent first-quarter earnings conference call with industry analysts. Northeast G&P includes midstream gathering and processing business in the Marcellus and Utica shale regions, including Susquehanna Supply Hub and Ohio Valley Midstream, as well as equity investments.
The company also cited lower requirements resulting from the $484.6 million sale of its 50% interest in Jackalope Gas Gathering Services in Wyoming's Powder River Basin to an affiliate of Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas). For more on Crestwood, see May 1, 2019, article - Crestwood Equity Expands Role in Key U.S. Basins with More than $1 Billion in Projects
Armstrong said he expects Williams' capital-expansion spending to be about $2.5 billion per year over the next two to three years.
Still, on May 3, the company reported that the U.S. Federal Energy Regulatory Commission (FERC) had issued a certificate of public convenience and necessity authorizing the Northeast Supply Enhancement project, which is an expansion of the existing Transco natural gas pipeline to serve New York markets in time for the 2020-2021 winter heating season.
The enhancement will provide 400,000 dekatherms per day of additional natural gas supply to National Grid, which is converting about 8,000 customers per year from heating oil to natural gas in New York City and Long Island, according to Williams. The project includes 10 miles of 42-inch pipeline looping facilities (new pipe alongside of existing pipe), three miles of onshore, 26-inch looping facilities, 23 miles of offshore, 26-inch looping facilities, the addition of 21,902 horsepower at an existing compressor station, and a new 32,000-horsepower compressor station.
However, the New York Department of Environmental Conservation recently rejected the enhancement project, citing concerns over its environmental impact.
"This includes potentially significant impacts from the resuspension of sediments and other contaminants, as well as to habits due to the disturbance of shell fish beds and other benthic resources," the department said.
Williams plans to quickly resubmit an application to obtain the permits, according to Reuters.
The company anticipates the start of construction this fall. Industrial Info is tracking five projects with a combined worth of $190 million that are tied to the enhancement pipeline. Wood PLC (Aberdeen, Scotland) is performing design engineering. Click here for the list of projects.
In March, Williams announced an open season for the Regional Energy Access expansion of its Transco interstate pipeline in the northeast U.S. The project would include 34 miles of pipeline looping and additional compression Transco facilities. It would connect Marcellus natural gas from receipt points along the pipeline's Leidy Line in Luzerne County, Pennsylvania, to delivery points in Pennsylvania and New Jersey. For more information, see Industrial Info's project report.
In February, Williams and Targa Resources Corporation (NYSE:TRGP) (Houston, Texas) announced natural gas liquids (NGL) agreements and NGL pipeline projects to link the Conway, Kansas, and Mont Belvieu, Texas, NGL markets. The proposed, 188-mile Bluestem Pipeline would run from Williams' fractionator in Conway, Kansas, and the southern terminus of the Overland Pass Pipeline, to an interconnect with Targa's Grand Prix NGL pipeline in Kingfisher County, Oklahoma. Targa will construct a 110-mile extension of Grand Prix from southern Oklahoma into the STACK region of Central Oklahoma, where it will connect with the Bluestem Pipeline. Industrial Info is tracking four projects valued at $540 million that are tied to the Bluestem Pipeline. Click here for the list of projects.
For more on Targa and the Grand Prix pipeline, see May 9, 2019, article - Targa Vows to Restrain Capital Project Investments in Future. For more on Williams, see February 18, 2019, article - Williams Companies Expands Reach Across Gulf Coast, into DJ Basin with $2.7 Billion in Projects.
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.
Researched by Industrial Info Resources (Sugar Land, Texas)--Williams Companies (NYSE:WMB) (Tulsa, Oklahoma) has trimmed its 2019 growth capital expenditure guidance by $400 million. With the new capital guidance range of $2.3 billion to $2.5 billion, the midstream energy pipeline company still has plenty of projects on its plate for 2019 and afterward.
Williams is targeting lower capital expenditures for its Northwest G&P business in response to producer activity in the region, Chief Executive Officer Alan Armstrong said during the company's recent first-quarter earnings conference call with industry analysts. Northeast G&P includes midstream gathering and processing business in the Marcellus and Utica shale regions, including Susquehanna Supply Hub and Ohio Valley Midstream, as well as equity investments.
The company also cited lower requirements resulting from the $484.6 million sale of its 50% interest in Jackalope Gas Gathering Services in Wyoming's Powder River Basin to an affiliate of Crestwood Equity Partners LP (NYSE:CEQP) (Houston, Texas). For more on Crestwood, see May 1, 2019, article - Crestwood Equity Expands Role in Key U.S. Basins with More than $1 Billion in Projects
Armstrong said he expects Williams' capital-expansion spending to be about $2.5 billion per year over the next two to three years.
Still, on May 3, the company reported that the U.S. Federal Energy Regulatory Commission (FERC) had issued a certificate of public convenience and necessity authorizing the Northeast Supply Enhancement project, which is an expansion of the existing Transco natural gas pipeline to serve New York markets in time for the 2020-2021 winter heating season.
The enhancement will provide 400,000 dekatherms per day of additional natural gas supply to National Grid, which is converting about 8,000 customers per year from heating oil to natural gas in New York City and Long Island, according to Williams. The project includes 10 miles of 42-inch pipeline looping facilities (new pipe alongside of existing pipe), three miles of onshore, 26-inch looping facilities, 23 miles of offshore, 26-inch looping facilities, the addition of 21,902 horsepower at an existing compressor station, and a new 32,000-horsepower compressor station.
However, the New York Department of Environmental Conservation recently rejected the enhancement project, citing concerns over its environmental impact.
"This includes potentially significant impacts from the resuspension of sediments and other contaminants, as well as to habits due to the disturbance of shell fish beds and other benthic resources," the department said.
Williams plans to quickly resubmit an application to obtain the permits, according to Reuters.
The company anticipates the start of construction this fall. Industrial Info is tracking five projects with a combined worth of $190 million that are tied to the enhancement pipeline. Wood PLC (Aberdeen, Scotland) is performing design engineering. Click here for the list of projects.
In March, Williams announced an open season for the Regional Energy Access expansion of its Transco interstate pipeline in the northeast U.S. The project would include 34 miles of pipeline looping and additional compression Transco facilities. It would connect Marcellus natural gas from receipt points along the pipeline's Leidy Line in Luzerne County, Pennsylvania, to delivery points in Pennsylvania and New Jersey. For more information, see Industrial Info's project report.
In February, Williams and Targa Resources Corporation (NYSE:TRGP) (Houston, Texas) announced natural gas liquids (NGL) agreements and NGL pipeline projects to link the Conway, Kansas, and Mont Belvieu, Texas, NGL markets. The proposed, 188-mile Bluestem Pipeline would run from Williams' fractionator in Conway, Kansas, and the southern terminus of the Overland Pass Pipeline, to an interconnect with Targa's Grand Prix NGL pipeline in Kingfisher County, Oklahoma. Targa will construct a 110-mile extension of Grand Prix from southern Oklahoma into the STACK region of Central Oklahoma, where it will connect with the Bluestem Pipeline. Industrial Info is tracking four projects valued at $540 million that are tied to the Bluestem Pipeline. Click here for the list of projects.
For more on Targa and the Grand Prix pipeline, see May 9, 2019, article - Targa Vows to Restrain Capital Project Investments in Future. For more on Williams, see February 18, 2019, article - Williams Companies Expands Reach Across Gulf Coast, into DJ Basin with $2.7 Billion in Projects.
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.
