A limited liability company, Constitution Pipeline Company, LLC, owned by subsidiaries of Williams Partners L.P. (WPZ - Free Report) , Cabot Oil & Gas Corporation (COG - Free Report) , Piedmont Natural Gas Company, Inc. , and WGL Holdings, Inc. (WGL - Free Report) , has filed an application with the Federal Energy Regulatory Commission (FERC) for pipeline construction.
The application seeks consent for a 122-mile pipeline linking domestic natural gas production in northeastern Pennsylvania with northeastern markets by spring 2015. The cost of the project is estimated at $683 million.
The Constitution Pipeline is capable of carrying about 650,000 dekatherms of natural gas per day from Williams Partners' gathering system in Susquehanna County, Pa., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, New York. The natural gas volume transferred through the 30-inch underground transmission pipeline is sufficient for about 3 million homes.
Constitution Pipeline Company has engaged itself in the FERC pre-filing process since last spring. In this respect, the company seeks inputs from citizens, governmental bodies and several other interested parties to determine and deal with matters associated with the proposed pipeline alignment. The pipeline route has been altered by over 50% from the original alignment – mostly to into account stakeholders’ input.
With a stake of 41% in Constitution Pipeline, Williams Partners will provide construction, operation and maintenance services for the new pipeline, through its affiliates. Through their subsidiaries, Cabot, Piedmont Natural Gas and WGL own a share of 25%, 24% and 10%, respectively.
Williams Partners is an energy master limited partnership engaged in gathering, transportation, treating and processing of natural gas as well as fractionation and storage of natural gas liquids. The general partner of the partnership is owned and managed by Williams Companies Inc.
Williams Partners carries a Zacks Rank #3 (Hold).