TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) and Williams Partners L.P. (NYSE: WPZ) announced today that the Federal Energy Regulatory Commission (FERC) has approved an application for Gulf Trace, a 1.2 million dekatherm per day expansion of the Transco pipeline system to serve the Cheniere Energy Partners, L.P. (NYSE: CQP) Sabine Pass Liquefaction project being developed in Cameron Parish, La. The Sabine Pass LNG export terminal will connect U.S. natural gas supplies with global LNG markets.
Transco, a wholly owned subsidiary of Williams Partners, has executed an agreement with Sabine Pass Liquefaction, LLC, for the entire capacity of the Gulf Trace project.
The Sabine Pass export terminal is currently under construction and first LNG is expected in late 2015. Once complete, the Sabine Pass liquefaction terminal will be the first large-scale LNG export facility in operation in the United States, with six LNG trains and expected nominal production capacity of 27 million tonnes per annum. Sabine Pass Liquefaction’s project is supported by long-term contacts with several LNG off-take shippers and is expected to provide LNG for export to diverse markets overseas.
The Gulf Trace project is designed to make Transco’s production area mainline and southwest Louisiana lateral systems bi-directional from Station 65 in St. Helena Parish, La. to Cameron Parish, La. In addition to the pipeline reversal, a new, 7-mile 36-inch lateral pipeline, the expansion of an existing compressor station and a new greenfield compressor station are planned in order to provide firm transportation service to the Sabine Pass LNG facility.
The target in-service date is first quarter 2017, subject to timely receipt of all necessary remaining approvals by regulatory bodies.
Gulf Trace is part of $5.1 billion in transmission growth projects Williams Partners plans to bring into service in the eastern United States between 2015 and 2017. Williams Partners is executing on 15 projects in 10 eastern states to serve growing demand for natural gas to serve power generation, industrial and local distribution customers. Once complete, these projects will increase Transco’s system capacity by more than 57 percent.
So far this year, Williams Partners has placed into service the Virginia Southside Expansion, Rockaway Delivery Lateral, the Northeast Connector, Mobile Bay South III Expansion and the Woodbridge Delivery Lateral. Williams Partners expects to place into full service Transco’s Leidy Southeast expansion by year’s end.
About Williams and Williams Partners
Williams (NYSE: WMB) is a premier provider of large-scale infrastructure connecting North American natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams owns approximately 60 percent of Williams Partners L.P. (NYSE: WPZ), including all of the 2 percent general-partner interest. Williams Partners is an industry-leading, large-cap master limited partnership with operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. With major positions in top U.S. supply basins and also in Canada, Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. www.williams.com
About Cheniere Energy, Inc.
Cheniere Energy, Inc. is a Houston-based energy company primarily engaged in LNG-related businesses. Cheniere is developing a liquefaction project at the Sabine Pass LNG terminal in Cameron Parish, Louisiana, for up to six liquefaction trains, with expected aggregate nominal production capacity of 27 mtpa. Construction is underway on trains 1-5, with first LNG expected late 2015. Cheniere is also developing liquefaction facilities near Corpus Christi, Texas, for up to five liquefaction trains with expected aggregate nominal production capacity of approximately 22.5 mtpa of LNG. Construction has begun on the first two trains. Cheniere has also agreed in principle to partner with Parallax Enterprises, LLC., for the development of up to 10 mtpa of LNG production capacity through Parallax’s two mid-scale projects, Live Oak LNG and Louisiana LNG.
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.
Tom Droege, (918) 573-4034
John Porter, (918) 573-0797
Brett Krieg, (918) 573-4614