Williams to Expand Leidy Line - Analyst Blog

By Zacks Equity Research,

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A leading master limited partnership, Williams Partners L.P. ( WPZ ) announced that its Transco natural gas pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) relating to the expansion of its existing Leidy Line in northern Pennsylvania. The capital cost of the project is estimated at $610 million.

The mainline from New Jersey through Alabama will also be expanded. The project, which is fully subscribed by shippers with long-term contracts, will boost the capacity by 525,000 dekatherms of natural gas per day to serve the growing natural gas markets along the system.

The Leidy Southeast expansion project is intended to provide the rising needs of gas consumers along the Atlantic Seaboard and throughout the southeastern United States. The planned Leidy Southeast project scheduled for completion in late 2015 is likely to provide enough natural gas to serve households equivalent to about two million.

Currently, the Leidy Line's subscribed firm transportation capacity is 1.7 million dekatherms, which is expected to be augmented by about 30% upon completion of the expansion.

The proposed expansion will offer firm transportation from various supply points down Transco's Leidy Line to delivery points along its mainline system as far south as Transco's existing Station 85 Zone 4 and 4A Pooling Points in Choctaw County, Ala.

Addition of about 30 miles of new pipe and horsepower at existing compressor stations at various locations in Pennsylvania and New Jersey and alteration of existing facility along its mainline will be part of the expansion.

Subject to various approvals, the construction of the compressor station is likely to commence in the fall of 2014 with pipeline construction following in the spring of 2015. All other compression-related activities will be executed totally within existing compressor station facilities.

Another major expansion project on the Leidy Line that will serve the New York Market is expected to be commissioned in Nov 2013.

Williams Partners carries a Zacks Rank #3 (Hold). However, better-placed Zacks Ranked #1 (Strong Buy) stocks - China Petroleum & Chemical Corp. ( SNP ), Stone Energy Corp. ( SGY ) and Dril-Quip Inc. ( DRQ ) - could be good buying options for the short term.

DRIL-QUIP INC (DRQ): Free Stock Analysis Report

STONE ENERGY CP (SGY): Free Stock Analysis Report

CHINA PETRO&CHM (SNP): Free Stock Analysis Report

WILLIAMS PTNRS (WPZ): Free Stock Analysis Report

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Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Stocks
Referenced Stocks: DRQ , SGY , SNP , WPZ

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