A leading master limited partnership,
Williams Partners L.P.
) natural gas pipeline Transco has filed an application with the
Federal Energy Regulatory Commission (FERC) relating to the
expansion of a compressor station and supply of additional firm
natural gas transportation capacity to booming markets in the
Southeast United States by the spring of 2015.
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The Mobile Bay South III Expansion Project is intended to make
225,000 dekatherms per day of firm transportation service
available on the Transco Mobile Bay Lateral, which extends from
the Station 85 4A Pooling Point and includes other receipt points
located at Transco's Station 85 in Choctaw County, AL, to
interconnections with Florida Gas Transmission and Bay Gas
Storage in Mobile County in the same state. The project's natural
gas yield is likely to serve 1 million homes.
The expansion project entails addition of compression power at
Transco Compressor Station 85 in Choctaw County. It also proposes
to upgrade the existing facilities in Washington and Mobile
counties in Alabama.
Construction is projected to commence in the spring of 2014,
subject to the FERC approval. The project is expected to have a
capital cost of around $50 million.
A 10,200-mile Transco pipeline supplies natural gas
transportation and storage services markets throughout the
Northeastern and Southeastern United States. The key markets of
the pipeline include New York City, Philadelphia, Washington D.C.
and Atlanta, while the major customers are mainly power
generators, local distribution companies and producers.
Over the last ten years, the company has invested over $1.8
billion and commissioned 20 Transco growth projects. Currently,
the system capacity is around 9.9 million dekatherms per day,
which is adequate to provide natural gas to about 42 million
Williams Partners carries a Zacks Rank #3 (Hold). However, Zacks
Ranked #1 (Strong Buy) stocks
Memorial Production Partners LP
Gulfmark Offshore, Inc.
) are expected to outperform in the near term.