A leading master limited partnership,
Williams Partners L.P.
) 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
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
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.
Stone Energy Corp.
) - could be good buying options for the short term.
DRIL-QUIP INC (DRQ): Free Stock Analysis
STONE ENERGY CP (SGY): Free Stock Analysis
CHINA PETRO&CHM (SNP): Free Stock Analysis
WILLIAMS PTNRS (WPZ): Free Stock Analysis
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