Williams Partners Updates Target In-Service Date for Proposed Atlantic Sunrise Project
October 28 2016 - 6:45AM
Business Wire
- Company expects partial service to
begin during the second half of 2017; targeting full service
mid-2018
- Unique Marcellus takeaway project
leverages significant existing infrastructure to connect
Pennsylvania production with East Coast Markets
Williams Partners L.P. (NYSE: WPZ) today reported that while it
expects to begin a portion of its Atlantic Sunrise expansion
project service during the second half of 2017, it is revising the
targeted full in-service for the project to mid-2018.
The revision is a result of the recently updated schedule of
environmental review published Oct. 20 by the Federal Energy
Regulatory Commission (FERC) and anticipated delays in receipt of
certain permits required to commence construction, as well as
expected construction within required environmental windows.
FERC’s revised environmental review schedule establishes Dec.
30, 2016 as the date for its issuance of the final Environmental
Impact Statement (EIS). Following the receipt of all necessary
regulatory approvals, Williams Partners anticipates beginning
construction on the Transco mainline facilities in mid-2017 to
create a much-needed path from the northern part of the Transco
system into its southeast markets for the 2017-2018 heating
season.
“We continue to work with the FERC, state and other federal
permitting agencies to secure the necessary approvals to construct
this critical infrastructure project and connect consumers along
the East Coast with abundant, cost-effective Pennsylvania natural
gas supplies,” said Rory Miller, senior vice president of Williams
Partners’ Atlantic-Gulf operating area. “We would also note
Pennsylvania Governor Tom Wolf’s recent comments that new energy
infrastructure projects, including Atlantic Sunrise, are critical
to Pennsylvania’s economic future because they enable consumers to
access an affordable, reliable and cleaner-burning energy resource.
We also share the governor’s commitment to protecting our
environment.
“Unlike other Marcellus takeaway projects, a leading advantage
of Atlantic Sunrise is that through modifications to the existing
Transco mainline the project will be able to deliver a highly
effective, environmentally-responsible solution to connect
Pennsylvania natural gas production with markets hundreds of miles
away. In advance of putting the full project into service, this
affords us a unique opportunity to provide a portion of service
prior to completing the full project.”
The FERC EIS assesses the potential environmental effects of the
construction and operation of the project in accordance with the
requirements of the National Environmental Policy Act. The FERC is
the primary approval agency and serves in a coordinating role with
other relevant agencies.
In May 2016 the FERC released a draft EIS, concluding that
environmental impacts would be reduced to “less than significant
levels” with the implementation of mitigation measures proposed by
the company and FERC.
Consistent with prior practice, Williams Partners’ financial
plan further risks these project cash flows by approximately six
months.
About Atlantic Sunrise
Once complete, the Atlantic Sunrise expansion will help
alleviate infrastructure bottlenecks in Pennsylvania, connecting
abundant Marcellus gas supplies with markets in the Mid-Atlantic
and Southeastern U.S. The nearly $3 billion expansion of the
existing Transco natural gas pipeline is designed to increase
deliveries by 1.7 billion cubic feet per day (enough to provide
service to seven million homes). Williams Partners’ net investment
in the Atlantic Sunrise project is expected to be approximately
$1.9 billion.
Pennsylvania State University researchers forecast the Atlantic
Sunrise project to directly and indirectly support approximately
8,000 jobs in the 10 Pennsylvania counties during the project’s
construction phase, resulting in an estimated $1.6 billion economic
impact in the project area.
Additional information about the Atlantic Sunrise project can be
found at www.williams.com/atlanticsunrise.
Transco is a wholly owned subsidiary of Williams Partners, of
which Williams (NYSE: WMB) owns controlling interests and is the
general partner. Transco is the nation’s largest and
fastest-growing interstate natural gas transmission pipeline
system. It delivers natural gas to customers through its
10,200-mile pipeline network whose mainline extends nearly 1,800
miles between South Texas and New York City. The system provides
cost-effective natural gas services to U.S. markets in the
Southeast and Atlantic seaboard states, including major
metropolitan areas in New York, New Jersey and Pennsylvania, as
well as international markets.
About Williams Partners
Williams Partners (NYSE: WPZ) is an industry-leading, large-cap
natural gas infrastructure master limited partnership with a strong
growth outlook and major positions in key U.S. supply basins.
Williams Partners has operations across the natural gas value chain
from gathering, processing and interstate transportation of natural
gas and natural gas liquids to petchem production of ethylene,
propylene and other olefins. Williams Partners owns and operates
more than 33,000 miles of pipelines system wide – including the
nation’s largest volume and fastest growing pipeline – providing
natural gas for clean-power generation, heating and industrial use.
Williams Partners’ operations touch approximately 30 percent of
U.S. natural gas. Tulsa, Okla.-based Williams (NYSE: WMB), a
premier provider of large-scale U.S. natural gas infrastructure,
owns 60 percent of Williams Partners, including all of the 2
percent general-partner interest. www.williams.com
Portions of this document may constitute “forward-looking
statements” as defined by federal law. Although the partnership
believes any such statements are based on reasonable assumptions,
there is no assurance that actual outcomes will not be materially
different. Additional information about issues that could lead to
material changes in performance is contained in the partnership’s
annual and quarterly reports filed with the Securities and Exchange
Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20161028005147/en/
Williams Partners L.P.Media Contact:Keith Isbell,
918-573-7308orInvestor Contacts:John Porter,
918-573-0797orBrett Krieg, 918-573-4614
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