A leading master limited partnership, Williams Partners
L.P. ( WPZ ) has filed an application with the Federal
Energy Regulatory Commission (FERC) related to its Transco
pipeline. The partnership aims to make another natural gas delivery
point to New York City available from the Transco pipeline.WILLIAMS COS (WMB): Free Stock Analysis ReportWILLIAMS PTNRS (WPZ): Free Stock Analysis
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The Rockaway Delivery Lateral Project, likely to be commissioned
during the second half of 2014, is estimated to supply 647,000
dekatherms per day of natural gas capacity to National Grid's gas
distribution system in Brooklyn and Queens, New York. The project's
design offers supply flexibility and enhanced capacity to meet
additional demand growth in the future.
The new 3.2 mile, 26-inch lateral will have around 2.9 miles of
offshore pipeline and 0.3 miles of onshore pipeline. Construction
work is expected to commence in late 2013, pending approval from
FERC. The project is projected to cost about $182 million.
The favored passage intends to evade residential, commercial and
sensitive environmental areas. Subsurface directional drilling
technology would be used to construct about one mile of the
pipeline from sea to shore so that the beach and near-shore areas
along with the onshore portions of Jacob Riis Park are not
The project will provide additional gas supplies to New York City
which struggles to meet federal environmental standards and its own
clean energy goals in its PlaNYC 2030.
The 10,200-mile Transco pipeline system carries natural gas to
markets across the northeastern and southeastern United States.
Currently, the system capacity is about 9.7 million dekatherms per
The general partner of the partnership is owned and managed by
Williams Companies Inc. ( WMB ).
Williams Partners holds a Zacks #4, which is equivalent to a Sell
rating for a period of one to three months.