Transco Pipeline map (click for larger version)

The largest interstate natural gas pipeline system in the country, the Transcontinental Gas Pipe Line (Transco), owned by Williams, recently flowed and delivered the most gas for a single day it has ever delivered–15.68 billion cubic feet (Bcf), on Jan. 21.

Transco also set a new 3-day average record of 15.3 Bcf/d, from Jan. 30 through Feb. 1.

While the pipeline was originally built to flow gas from the Gulf Coast to the northeast, in the past couple of years Williams has converted the system to be bidirectional. These days most of the gas flows from the Marcellus/Utica south, rather than the other way around. So this record comes as a result of the huge production coming from the M-U.

You may recall that Atlantic Sunrise Pipeline project which built 200+ miles of new pipeline in northeast Pennsylvania is part of the Transco system, which went online in early October (see FERC Approves Atlantic Sunrise for Startup! Pipe Opens Sat. Oct. 6). The main shipper on Atlantic Sunrise is Cabot Oil & Gas, but Cabot isn’t the only shipper. Seneca Resources and Range Resources are also shipping gas on Atlantic Sunrise.

We don’t think it’s a stretch to say record volumes being pumped through Transco are due to the prolific production of Cabot and Seneca and Range. The country’s success is due to these companies’ success. A big hat tip to them!

Too bad places like Westchester County, NY is not able to share in the success of Transco. NY Gov. Cuomo is blocking pipelines that would bring some of northeast PA’s prolific production to the Empire State, and because of those policies, suburban New York City is now suffering the consequences (see Westchester NatGas Moratorium Begins to Bite NYC/Cuomo on the Butt).

And now New York City itself is facing a moratorium on new natural gas customers–from utility company National Grid (see National Grid Threatens New Gas Customer Moratorium on Long Island). National Grid says if NY blocks Williams’ Northeast Supply Enhancement (NESE) pipeline project–and expansion of the Transco into metro NYC–National Grid will slap a moratorium on new customers hooking up to their gas service. That means a new $1 billion arena for the New York Islanders hockey team won’t get built. Oops.

In yesterday’s press release, Williams mentions/nudges NY about NESE. A gentle reminder that NY had better get off the dime and approve it–or else.

Williams (NYSE: WMB) announced today that it recently delivered a record amount of natural gas on its Transco interstate gas pipeline, providing essential services to gas distribution companies, power generators, LNG exports and other customers located along the Eastern Seaboard and Gulf Coast.

The nation’s largest-volume natural gas transmission system, Transco delivered a record-breaking 15.68 million dekatherms (MMdt) on Jan. 21, 2019. The new peak-day mark surpasses the previous high that was set on Jan. 5, 2018. The Transco system, which stretches from South Texas to New York City, also established a new three-day market area delivery record, averaging 15.30 MMdt from Jan. 30 to Feb. 1, 2019.

The natural gas delivery records were made possible thanks to additional firm transportation capacity created by multiple fully-contracted Transco expansions completed in 2018 and early 2019 (Gulf Connector, Atlantic Sunrise, Garden State Phase II). Together, these expansions added more than 2.3 MMdt of firm transportation capacity to the existing pipeline system.

“The recent frigid conditions across the country are an important reminder of the vital role transmission pipelines play in delivering the natural gas necessary to keep millions of Americans safe and secure, especially during winter periods of peak demand,” said Alan Armstrong, president and chief executive officer of Williams. “The incremental capacity from the fully-contracted Transco expansion projects placed into service in 2018 and early 2019 reflects an increase of about 16 percent in Transco’s design capacity – which has helped position us to meet the growing demand needs of our customers.”

Construction is expected to commence on five additional Transco projects in 2019 (Rivervale South to Market, Hillabee Phase 2, Northeast Supply Enhancement, Gateway and Southeastern Trail), collectively creating approximately 1.15 MMdt of additional pipeline capacity in 2019 and 2020.

Transco is the nation’s largest-volume interstate natural gas pipeline system. It delivers natural gas to customers through its approximately 10,000-mile pipeline network whose mainline extends nearly 1,800 miles between South Texas and New York City. The system is a major provider of cost effective natural gas services that reach U.S. markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania.*

*Williams (Feb 7, 2019) – Williams’ Transco Pipeline Delivers Record Volumes