Back to top

Williams Partners Files for Transco Expansion in Northeast

Read MoreHide Full Article

One of the leading providers of energy infrastructure in the United States, Williams Partners L.P. (WPZ - Free Report) is planning to develop its Transco interstate natural gas pipeline and has also filed an application with the Federal Energy Regulatory Commission (FERC) seeking approval for its Rivervale South to Market project. Per the certificate application, the expansion is expected to have a capital cost of $127 million.

Rivervale South to Market Project

The project is expected to provide incremental service to natural gas consumers by generating 190,000 dekatherms per day of firm transportation capacity to northeastern markets. The project is expected to be operational by the winter heating season of 2019-2020.

Under the Rivervale South to Market project, an agreement has been executed by the company with Direct Energy Business Marketing and UGI Energy Services for firm transportation service. On completion, the project will benefit northeastern consumers, mainly in New Jersey and New York by providing for the growing demand for heating and power generation.

Transco pipeline has interconnection with Tennessee Gas Pipeline in River Vale (Bergen County), NJ to Transco’s Central Manhattan Meter Station in Hudson County and the Station 210 pooling point in Mercer County.

The expansion of the Rivervale South to Market project will entail uprating of 10.35 miles of existing Transco pipeline, along with upgrades and alterations to existing pipeline facilities, all in New Jersey. It will also include addition of a 0.61-mile pipeline loop, which is subject to regulatory approval. A process used to boost the permissible operating pressure in a pipeline that is not being fully used per its design capability is known as uprating a pipeline.

The project to be added to the list of over $5 billion in Transco expansion projects commissioned in 2017 or currently in execution is scheduled to be brought online by Nov 1, 2019.

About Transco

Transcontinental Gas Pipe Line Company, LLC (Transco) through its 10,200-mile pipeline provides natural gas to customers. Its mainline extends about 1,800 miles between South Texas and New York City. The system mainly delivers cost-effective natural gas services that are accessible by U.S. markets in 12 Southeast and Atlantic Seaboard states, comprising key metropolitan areas in New York, New Jersey and Pennsylvania.

About Williams Partners

Oklahoma-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 ownership interest in pipeline systems spread across 33,000 miles. These pipelines transport natural gas from North American resource plays to markets with demand for clean-power generation, heating and industrial use.

Price Movement

Year to date, shares of Williams Partners have gained 4% compared with the industry’s increase of 4.6%.

Zacks Rank & Key Picks

Currently, Williams Partners carries a Zacks Rank #3 (Hold).

A few better-ranked players in the energy sector are TransCanada Corporation (TRP - Free Report) , Transmontaigne Partners LP (TLP - Free Report) and Range Resources Corporation (RRC - Free Report) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.  

Headquartered in Calgary, Canada, TransCanada is a midstream energy firm in North America. The company delivered an average positive earnings surprise of 4.06% over the last four quarters.

Transmontaigne, headquartered in Denver, CO, engages in transporting and storing refined petroleum products. The firm delivered an average positive earnings surprise of 6.60% over the last four quarters.

Based in Fort Worth, TX, Range Resources is an independent oil and gas company, engaged in the exploration, development and acquisition of U.S. oil and gas resources. The company’s 2017 earnings are estimated to grow 1587.17%.

Zacks' 10-Minute Stock-Picking Secret

Since 1988, the Zacks system has more than doubled the S&P 500 with an average gain of +25% per year. With compounding, rebalancing, and exclusive of fees, it can turn thousands into millions of dollars.

But here's something even more remarkable: You can master this proven system without going to a single class or seminar. And then you can apply it to your portfolio in as little as 10 minutes a month.

Learn the secret >>

More from Zacks Analyst Blog

You May Like