Piedmont Natural Gas, through its wholly owned subsidiary Piedmont Constitution Pipeline Company, LLC, joined Williams Partners L.P. and Cabot Oil and Gas Corporation as a 24% equity participant in a joint venture project to construct the Constitution Pipeline, and will invest an estimated $180 million in the project.
An affiliate of Williams Partners will construct, operate, and maintain the 30-inch, 121-mile transmission pipeline that is being designed with sufficient capacity to transport 650,000 Dth/d of natural gas from established Marcellus production areas in Susquehanna County in northern Pennsylvania. The pipeline will connect with the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY and is already fully contracted with long-term commitments from producers operating in Pennsylvania. Piedmont will not be a customer of Constitution Pipeline.
Williams Partners will maintain a 51% ownership share, Cabot Oil and Gas a 25% percent share. Construction is expected to begin in April 2014 with an in-service date of March 2015. Constitution Pipeline is in the pre-filing process with the FERC. Constitution Pipeline plans to file a formal certificate application with the FERC next spring.