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Williams Partners' NSEP Project to Lead to Economic Benefits
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Pipeline operator Williams Partners L.P. recently announced the results of a thorough analysis of the economic impact of the proposed Northeast Supply Enhancement Project ("NSEP"). The study was authored by researchers at Rutgers University who stated that it will have numerous positive effects including an addition of $327 million to the GDP and much more. The $1 billion energy infrastructure investment project – devised to enhance natural gas shipments to the New York City by winter of 2019-20 – is in line with President Trump’s increasing focus on the energy sector.
The researchers stated that the design and construction of the NSEP will add value to the economic activities of Pennsylvania, New Jersey and New York. It will create 3,186 direct and indirect jobs during the construction period, which will generate approximately $234 million in labor income in the short run. It will also be in line with Trump’s promise of creating 25 million new jobs over the next decade in the country.
State-wise Impact
New Jersey is expected to achieve $239.9 million additional economic activity from the design and construction of NSEP. The state will witness 2,411 direct and indirect job creations with approximately $172 million in labor income. The state will receive $16.4 million in local and state taxes due to NSEP.
Pennsylvania is supposed to receive $63.6 million additional economic activity from NSEP. The state can gain about 500 direct and indirect jobs with approximately $45.6 million in labor income. The state will receive $3.9 million in local and state taxes due to the project.
New York can add $23.7 million more to its GDP due to the NSEP. The state will obtain 276 more direct and indirect jobs with approximately $16.6 million in labor income. The state will receive $2.3 million in local and state taxes due to NSEP.
Once the pipeline becomes operational, Williams Partners will pay $11.1 million in taxes to the local municipal and county governments.
About NSEP
The NSEP, proposed by Williams Partners to expand the partnership's Transcontinental pipeline, was filed with the Federal Energy Regulatory Commission in Mar 2017. The expansion is designed to address the growing demand for natural gas in the Northeastern U.S. The pipeline ships natural gas from the Gulf Coast of Texas, Louisiana, Mississippi, and Alabama, through Georgia, South and North Carolina, Virginia, Maryland, and Pennsylvania to the New Jersey and New York City area.
NSEP includes 10 miles of pipe in Pennsylvania, 3 miles in New Jersey and 23 miles of pipe offshore in both New Jersey and New York state waters. The project also includes a new compressor facility in New Jersey and additional horsepower at a compressor facility in Pennsylvania.
About the Partnership
Tulsa, OK-based Williams Partners is a publicly traded master limited partnership with midstream infrastructure assets that are involved in transporting, gathering and processing natural gas and natural gas liquids. The partnership also has an ownership interest in pipeline systems that are spread across 33,000 miles – transporting natural gas from North American resource plays to markets with demand for clean power generation, heating, and industrial use.
Price Performance
In the last six months, Williams Partners’ units have outperformed Zacks categorized Energy & Pipeline - Master Limited Partnership (MLP) industry. William Partners’ units gained 13.93% compared with the industry’s increase of 11.98%.
Zacks Rank and Stocks to Consider
Williams Partners presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and energy sector are Delek US Holdings, Inc. (DK - Free Report) , Enbridge Energy, L.P. and Canadian Natural Resources Limited (CNQ - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings’ sales for 2017 are expected to increase 71.35% year over year. The company came up with a positive average earnings surprise of 60.68% in the last four quarters.
Enbridge Energy’s sales for the second quarter of 2017 are expected to increase 13.17% year over year. The partnership delivered an average positive earnings surprise of 38.22% in the last four quarters.
Canadian Natural Resources’ sales for 2017 are expected to increase 47.41% year over year. The company delivered a positive earnings surprise of 30.77% in the first quarter of 2017.
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Williams Partners' NSEP Project to Lead to Economic Benefits
Pipeline operator Williams Partners L.P. recently announced the results of a thorough analysis of the economic impact of the proposed Northeast Supply Enhancement Project ("NSEP"). The study was authored by researchers at Rutgers University who stated that it will have numerous positive effects including an addition of $327 million to the GDP and much more. The $1 billion energy infrastructure investment project – devised to enhance natural gas shipments to the New York City by winter of 2019-20 – is in line with President Trump’s increasing focus on the energy sector.
The researchers stated that the design and construction of the NSEP will add value to the economic activities of Pennsylvania, New Jersey and New York. It will create 3,186 direct and indirect jobs during the construction period, which will generate approximately $234 million in labor income in the short run. It will also be in line with Trump’s promise of creating 25 million new jobs over the next decade in the country.
State-wise Impact
New Jersey is expected to achieve $239.9 million additional economic activity from the design and construction of NSEP. The state will witness 2,411 direct and indirect job creations with approximately $172 million in labor income. The state will receive $16.4 million in local and state taxes due to NSEP.
Pennsylvania is supposed to receive $63.6 million additional economic activity from NSEP. The state can gain about 500 direct and indirect jobs with approximately $45.6 million in labor income. The state will receive $3.9 million in local and state taxes due to the project.
New York can add $23.7 million more to its GDP due to the NSEP. The state will obtain 276 more direct and indirect jobs with approximately $16.6 million in labor income. The state will receive $2.3 million in local and state taxes due to NSEP.
Once the pipeline becomes operational, Williams Partners will pay $11.1 million in taxes to the local municipal and county governments.
About NSEP
The NSEP, proposed by Williams Partners to expand the partnership's Transcontinental pipeline, was filed with the Federal Energy Regulatory Commission in Mar 2017. The expansion is designed to address the growing demand for natural gas in the Northeastern U.S. The pipeline ships natural gas from the Gulf Coast of Texas, Louisiana, Mississippi, and Alabama, through Georgia, South and North Carolina, Virginia, Maryland, and Pennsylvania to the New Jersey and New York City area.
NSEP includes 10 miles of pipe in Pennsylvania, 3 miles in New Jersey and 23 miles of pipe offshore in both New Jersey and New York state waters. The project also includes a new compressor facility in New Jersey and additional horsepower at a compressor facility in Pennsylvania.
About the Partnership
Tulsa, OK-based Williams Partners is a publicly traded master limited partnership with midstream infrastructure assets that are involved in transporting, gathering and processing natural gas and natural gas liquids. The partnership also has an ownership interest in pipeline systems that are spread across 33,000 miles – transporting natural gas from North American resource plays to markets with demand for clean power generation, heating, and industrial use.
Price Performance
In the last six months, Williams Partners’ units have outperformed Zacks categorized Energy & Pipeline - Master Limited Partnership (MLP) industry. William Partners’ units gained 13.93% compared with the industry’s increase of 11.98%.
Zacks Rank and Stocks to Consider
Williams Partners presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the oil and energy sector are Delek US Holdings, Inc. (DK - Free Report) , Enbridge Energy, L.P. and Canadian Natural Resources Limited (CNQ - Free Report) . All these stocks flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Delek US Holdings’ sales for 2017 are expected to increase 71.35% year over year. The company came up with a positive average earnings surprise of 60.68% in the last four quarters.
Enbridge Energy’s sales for the second quarter of 2017 are expected to increase 13.17% year over year. The partnership delivered an average positive earnings surprise of 38.22% in the last four quarters.
Canadian Natural Resources’ sales for 2017 are expected to increase 47.41% year over year. The company delivered a positive earnings surprise of 30.77% in the first quarter of 2017.
3 Stocks to Ride a 588% Revenue Explosion
At Zacks, we're mostly focused on short-term profit cycles, but the hottest of all technology mega-trends is starting to take hold...
By last year, it was already generating $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for those who make the right trades early. See Zacks' Top 3 Stocks to Ride This Space >>