TULSA, Okla. – Transco has filed an application with the Federal Energy Regulatory Commission (FERC) for its Dalton Expansion Project, which would support providing Marcellus shale gas to the Southeast for electricity generation and local natural gas distribution.
Transco has executed long-term agreements with shippers for all of the 448,000 dekatherms of firm transportation capacity to be created under the project. The project will consist of an expansion of Transco’s mainline from its Station 210 in New Jersey to points as far south as Holmesville, MS, and a new 111-mile lateral pipeline from Transco’s Station 115 to Murray County, GA. Also included in the expansion is a new compressor facility in Carroll County, GA, as well as three new metering facilities and other related pipe and valve modifications to existing facilities.
Transco is a wholly owned subsidiary of Williams Partners L.P., which Williams owns controlling and general-partner interests.
“As long-term demand for natural gas continues to grow, particularly in the power-generation sector, we’re executing a series of large-scale, integrated projects like the Dalton Expansion that move surging supplies in the northeast to high-value markets along the Eastern Seaboard and in the Southeast,” said Rory Miller senior vice president of Williams’ Atlantic-Gulf operating area.
To fund the lateral pipeline portion of the project, Williams Partners’ Transco and AGL Resources’ Dogwood Enterprise Holdings, Inc. have entered into an ownership arrangement whereby each party will hold a 50% undivided joint ownership interest in the lateral pipeline in Georgia. Under the proposal, Dogwood Enterprises will lease its ownership interest in the lateral to Transco. Transco’s net investment in the project is expected to be about $275 million.
Williams and AGL Resources initially disclosed their intent to develop the project in March 2014. Siting and environmental studies have been underway since that time, and today’s announcement signifies the commencement of the FERC approval process. Construction is planned to begin in the third quarter of 2016 with completion targeted for 2017, subject to all necessary or required approvals by regulatory bodies, including the FERC.