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Williams Partners L.P. (NYSE: WPZ) announced today that its Transco pipeline has filed an application with the Federal Energy Regulatory Commission (FERC) to provide another natural gas delivery point from its Transco pipeline to New York City.
The Rockaway Delivery Lateral Project is designed to provide approximately 647,000 dekatherms per day of natural gas delivery capacity to National Grid’s gas distribution system in Brooklyn and Queens, New York, providing National Grid with both supply flexibility and increased capacity to meet future incremental demand growth. The project is proposed to be placed into service during the second half of 2014.
“The project would create an additional delivery point from the existing Transco system into National Grid’s distribution network, enhancing service reliability and serving growth in the region,” said Frank Ferazzi, vice president and general manager of Williams Partners’ Transco pipeline. “This project is critical to provide the additional natural gas supplies New York City needs, particularly as it strives to meet federal environmental standards and its own ambitious clean energy goals identified in its PlaNYC 2030.”
The proposed 3.2-mile 26-inch lateral would consist of approximately 2.9 miles of offshore pipeline and approximately 0.3 miles of onshore pipeline. The preferred route avoids residential, commercial and sensitive environmental areas. The sea to shore portion of the pipeline (approximately one mile) would be constructed using subsurface directional drilling technology, allowing Williams to avoid all impacts to the beach and near-shore areas, as well as onshore portions of Jacob Riis Park.
If approved by FERC, construction could begin in late 2013. The capital cost of the project is estimated to be $182 million.
The Transco pipeline is a 10,200-mile pipeline system which transports natural gas to markets throughout the northeastern and southeastern United States. The current system capacity is approximately 9.7 million dekatherms per day.