Williams announced that Transco has filed an application with FERC for its Dalton Expansion project, which would support providing Marcellus gas to the Southeast for electricity generation and local natural gas distribution.
Transco has long-term agreements with shippers for 100% of the 448,000 Dth of firm transportation capacity to be created under the Dalton Expansion. 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 metering facilities and other related pipe and valve modifications to existing facilities.
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 $275 million. Construction is planned to begin in mid-2016 with completion targeted for 2017.