Tulsa-based Williams signs more gas shipping contracts for expanding

Journal Record, The (Oklahoma City), Dec 18, 2006 by Kirby Lee Davis

Williams reached agreements Friday to increase its Northeastern natural gas shipments next year.

The Tulsa-based natural gas giant has executed precedent agreements with seven shippers to move an additional 142,000 dekatherms daily from the Transco/Cove Point interconnect in Virginia and the Leidy Hub in Pennsylvania to Northeastern users, beginning November 2008.

This will tap Williams' previously announced Sentinel pipeline expansion, looping Williams' Transco natural gas pipeline in Pennsylvania and New Jersey with about 22 miles of 42-inch pipe, as well as minor compressor station modifications. Officials noted looping increases system capacity through the addition of a section of pipe that parallels an existing pipeline.

Williams projects that expansion should cost between $86 million to $120 million, with most of the expenditures coming in 2008. Officials said the precise facility design, cost and other details of the project are under development.

The company expects about 67,000 dekatherms of the daily increase will enter service in November 2008. The remainder will go into service in the following November.

The Transco pipeline has a transportation capacity of 8.1 million dekatherms of natural gas a day.

The Federal Energy Regulatory Commission has granted the company's request for a pre-application environmental review of the project. Williams expects to file a formal application with the FERC in February.

On Wall Street, Williams stock fell 51 cents Friday to close at $27.15, the 3.5 million shares trading hands about three-quarters of its daily average. The stock lost another 7 cents in after-hours trades.