The Leidy South project includes the proposed installation of new turbine-driven compressor units in Luzerne County, Pa., (Compressor Station 607) and Schuylkill County, Pa, (Compressor Station 620).
According to the researchers, the design and construction of two new compressor facilities associated with the proposed Leidy South project could support approximately 680 direct, indirect and induced jobs in Pennsylvania – primarily in Luzerne and Schuylkill counties – with a combined $28 million in employee compensation.
The economic modeling exercise was funded by Williams and uses IMPLAN, a widely used commercial software designed to perform input-output economic analysis in order to estimate the economic and employment impact on each of the counties where construction is expected to occur. IMPLAN is used by state governments across the nation for economic modeling and predicting.
“This report shows how natural gas infrastructure projects like Leidy South can provide a significant boost to our local economy,” said Columbia Montour Chamber of Commerce President Fred Gaffney. “Williams has a long history of operations in Pennsylvania and we are pleased to see the company continuing to invest in our region.”
Key findings from the analysis include:
• The project will require an investment of approximately $82 million by Williams to construct the two greenfield compressor facilities associated with the project. • The one-year construction phase of the two new compressor facilities is expected to result in overall economic impact of $100 million and could support 680 direct, indirect and induced jobs in Pennsylvania. • The majority of the economic impact is projected to be felt in Luzerne and Schuylkill counties, with Luzerne County experiencing a one-time economic impact of $47 million, supporting 340 jobs worth a combined $13 million in employee compensation. Schuylkill County is projected to experience a $39 million economic impact as a result of construction, supporting 290 jobs worth $10 million in employee compensation. • An estimated $1.3 million in one-time total tax revenues from the direct, indirect, and induced economic activity of construction. • Ongoing operations of the compressor facilities is expected to produce $2 million annually in total economic impact in Luzerne County and $2.1 million annually in total economic impact in Schuylkill County.
“Construction and ongoing operations of the project look to be economically beneficial to the counties the pipeline would cross, as well as to Pennsylvania and the region,” said Dr. Peter Angelides, Econsult Solutions Senior Vice President and Principal.
The complete economic impact analysis is available at www.williams.com/leidysouth.
The Leidy South project is a proposed expansion of Williams’ existing Pennsylvania energy infrastructure to meet the energy demand of the Mid-Atlantic region including customers in Pennsylvania by the 2021-22 winter heating season. Leidy South supports the broader goal of meeting the growing regional demand for affordable, clean, and reliable natural gas.
The project will help ease natural gas supply constraints, creating enough additional pipeline capacity to serve approximately 2.5 million homes and enabling more power plants to convert from coal to cleaner-burning natural gas. The U.S. leads the world in CO2 emissions reductions thanks to increased natural gas use.