OREANDA-NEWS. Williams Partners L.P. (NYSE: WPZ) announced today that its Transco natural gas pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) to expand its existing Leidy Line in northern Pennsylvania and its mainline from New Jersey through Alabama by 525,000 dekatherms of natural gas per day to serve growing natural gas markets along the system. The project is fully subscribed by shippers with long-term contracts.

This application is made as another major expansion project on the Leidy Line nears completion. The Northeast Supply Link project expands Transco's existing system connecting the Marcellus Shale production region to the New York market by 250,000 dekatherms per day. Williams placed a portion of the project's capacity (125,000 dekatherms per day) into service in August 2013 and the remaining portion of the USD 390 million expansion is on schedule to be placed into service in November 2013.

The Leidy Southeast expansion project is being designed to serve the growing needs of gas consumers along the Atlantic Seaboard and throughout the southeastern United States. Once the expansion is complete in late 2015, the Leidy Southeast project will provide enough natural gas to serve the equivalent of approximately two million households.

"In addition to Transco drawing on the vast natural gas supplies along the Gulf Coast and Mid-Continent region, Transco's Leidy Line is strategically positioned through the heart of one of the most important natural gas production areas in the country," said Frank Ferazzi, Vice President & General Manager of Williams' Transco pipeline. "As we continue to execute on these expansion projects we are further leveraging Transco's ability to serve some of the fastest growing markets in the country."

The proposed Leidy Southeast project will expand the Leidy Line's currently subscribed firm transportation capacity of 1.7 million dekatherms by about 30 percent. It will provide firm transportation from various supply points along Transco's Leidy Line to delivery points along its mainline system as far south as Transco's existing Station 85 Zone 4 and 4A Pooling Points in Choctaw County, Alabama.

The proposed expansion will primarily consist of approximately 30 miles of new pipe and horsepower addition at existing compressor stations at various locations in Pennsylvania and New Jersey, in addition to existing facility modificationsalong its mainline. The capital cost of the project is estimated to be approximately USD 610 million.

Most of the new pipe will be installed either entirely within or parallel to existing pipeline and utility rights-of-way. All other compression-related activities will be performed entirely within existing compressor station facilities. If approved, compressor station construction would begin in the fall of 2014 with pipeline construction following in the spring of 2015.

The Transco pipeline is a 10,200-mile pipeline system that provides natural gas transportation and storage services for markets throughout the Northeastern and Southeastern United States. Major markets include New York City, Philadelphia, Washington D.C. and Atlanta. Transco's major customers are primarily power generators, local distribution companies and producers. In the last decade, the company has placed into service 20 Transco growth projects totaling in excess of USD 1.8 billion of capital investment. The current system capacity is approximately 9.9 million dekatherms per day, which is enough natural gas to serve the equivalent of 42 million homes.