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Williams Seeks FERC Approval for Leidy South Project to Increase Marcellus & Utica Takeaway Capacity


TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) announced today that its Transco interstate pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) seeking authorization for its Leidy South project, which is proposed to connect robust supplies of natural gas in the Marcellus and Utica producing regions in Pennsylvania with markets along the Atlantic Seaboard by the 2021-2022 winter heating season.

The Leidy South project will expand Transco’s firm transportation capacity by 582,400 dekatherms per day from the Leidy Hub and Zick interconnect to points downstream in Transco’s Zone 5 and Zone 6 market areas. Seneca Resources Company, LLC, Cabot Oil & Gas Corporation and UGI Utilities have executed binding, 15-year commitments for 100 percent of such capacity.

“The Leidy South project will allow Williams to continue to grow our strategic footprint in the gas-rich Marcellus region, creating a unique opportunity to expand Transco by leveraging recent expansions on Williams’ Northeast Gathering & Processing assets in Pennsylvania,” said Micheal Dunn, chief operating officer of Williams.

The Leidy South project is designed to minimize environmental impacts by maximizing the use of existing Transco pipeline infrastructure and rights of way in Pennsylvania. This includes 6.3 miles of existing pipe replacement, 5.9 miles of new pipeline loop segments along the existing Transco pipeline corridor, and horsepower additions at two existing compressor facilities. The project also will include two new greenfield compressor facilities in Pennsylvania.

In addition, the project includes two lease arrangements: a capacity lease with National Fuel Gas Supply Corporation to enable the project to connect Clermont, Pennsylvania, to the Leidy Hub; and a lease of Meade Pipeline Company’s undivided ownership interest in the Central Penn Line from Zick to River Road.

Dunn added, “Pennsylvania is the second-largest natural gas producing state in the U.S., producing a record 6 trillion cubic feet of gas in 2018. While Pennsylvania produces record volumes of natural gas, pipeline infrastructure constraints continue to limit consumer access to the state’s supplies. Our Leidy South project will help ease natural gas supply constraints, creating enough additional pipeline capacity to serve approximately 2.5 million homes and enabling power plants to convert from coal to cleaner-burning natural gas.”

The certificate application reflects an expected capital cost of $531 million and a target in-service of Dec. 1, 2021.

According to third-party researchers, construction of the Leidy South Project’s two greenfield compressor facilities is estimated to generate $100 million in economic activity within Pennsylvania, supporting 750 jobs with combined earnings of $28 million, and produce $1.3 million in state tax revenue.

Transco delivers natural gas to customers through its 10,000-mile pipeline network whose mainline extends nearly 1,800 miles between South Texas and New York City. The system is a major provider of cost-effective natural gas services that reach U.S. markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.

About Williams

Williams (NYSE: WMB) is a premier provider of large-scale infrastructure connecting U.S. natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Oklahoma, Williams is an industry-leading, investment grade C-Corp with operations across the natural gas value chain including gathering, processing, interstate transportation and storage of natural gas and natural gas liquids. With major positions in top U.S. supply basins, Williams owns and operates more than 30,000 miles of pipelines system wide – including Transco, the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, heating and industrial use. Williams’ operations handle approximately 30% of U.S. natural gas. www.williams.com

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 and quarterly reports filed with the Securities and Exchange Commission.

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