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Cabot, Seneca take capacity on Transco’s Leidy South expansion

Williams this morning announced its Transco interstate pipeline has executed binding, 15-year commitments with Seneca Resources and Cabot Oil & Gas for 100% of the 580 million cubic feet per day (Mmcf/d) transportation capacity under its proposed Leidy South expansion project.

The project expands energy infrastructure that will further connect natural gas in the Marcellus and Utica Shale plays in Pennsylvania with growing demand along the Atlantic Seaboard as early as the fourth quarter of 2021.

Cabot is taking 250 Mmcf/d of capacity on Leidy South, Kallanish Energy reports. The independent producer’s capacity will deliver natural gas from the Zick interconnect in Susquehanna County, Pennsylvania, to the River Road interconnect in Transco’s Zone 6.

The company will also be participating as an equity owner through its ownership in the Meade Pipeline Co.

“Cabot is pleased to announce its participation as a shipper and owner on the Leidy South expansion project, which provides further visibility into the company’s ability to deliver longer-term growth at attractive netbacks,” said Dan Dinges, Cabot chairman, president and CEO.

“Since 2013, the Transco pipeline’s design capacity has grown by 62%, while its Marcellus takeaway capacity has increased by approximately 3 billion cubic feet per day,” said Frank Ferazzi, senior vice president of Williams’ Atlantic-Gulf Operating Area.

“The Leidy South project allows Williams to continue to grow our strategic footprint in the gas-rich Marcellus region, creating a unique opportunity to expand Transco by leveraging recent expansions on Williams’ Northeast Gathering & Processing assets in Pennsylvania.”

The Leidy South project will consist of compression and looping of existing Transco facilities in Pennsylvania. The project will also include two lease agreements; one with National Fuel Gas Supply Corp. from Leidy Hub to Clermont, Pennsylvania; and a second with Meade Pipeline from Zick to River Road on the Central Penn Line.

Transco is the nation’s largest-volume interstate natural gas pipeline system. It delivers natural gas to customers through its roughly 10,000-mile pipeline network whose mainline extends nearly 1,800 miles between South Texas and New York City.

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