Williams Seeks FERC Approval for Atlantic Sunrise Pipeline Expansion

Williams (NYSE: WMB) announced today that Transco has filed an application with the Federal Energy Regulatory Commission (FERC) seeking authorization for its Atlantic Sunrise expansion project, which would transport about 1.7 billion cubic feet of natural gas per day to markets in the Mid-Atlantic and Southeastern U.S.

Transco, the nation’s largest-volume and fastest-growing interstate natural gas pipeline system, is a wholly owned subsidiary of Williams Partners L.P. (NYSE: WPZ), of which Williams owns approximately 60 percent, including the general-partner interest.

“Atlantic Sunrise is a vital piece of North American energy infrastructure needed to transport low-cost, abundant supplies of natural gas from the Marcellus producing region in Pennsylvania to hungry markets along the Atlantic Seaboard,” said Rory Miller, senior vice president of Williams Partners’ Atlantic-Gulf operating area. “Shippers have signed long-term commitments for the expansion’s entire capacity, which represents enough natural gas to serve approximately 7 million homes.”

Williams expects to place Atlantic Sunrise into service in the second half of 2017 as part of $4.8 billion in transmission projects planned to come online through 2017. Atlantic Sunrise adds to the list of Transco’s continued growth opportunities to connect increasing supplies of domestic natural gas with strong demand centers on the Eastern Seaboard from New York City to the far Southeast.

The project consists of compression and looping of the Transco Leidy line in Pennsylvania and various locations along its mainline between Pennsylvania and South Carolina in addition to a greenfield pipeline segment, referred to as the Central Penn Line, connecting the northeastern Marcellus producing region to the Transco mainline near Station 195 in southeastern Pennsylvania. The greenfield segment will be jointly owned by Transco and a third party.

Williams Partners’ net investment in the Atlantic Sunrise project is expected to be approximately $2.1 billion.

Transco 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 is a major provider of cost-effective natural gas services that reach U.S. markets in 12 Southeast and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania

How Fracked Natural Gas Could Pump Millions into State Economies

Pennsylvanians are riding a wave of economic prosperity thanks to the state’s thriving natural gas industry, which supports more than 300,000 jobs and has contributed more than $34 billion to the state’s economy. Now, a major natural gas pipeline proposal appears primed to keep that economic momentum going strong.

Williams’ Atlantic Sunrise pipeline project will connect abundant Marcellus natural gas supply with markets throughout the eastern and southeastern United States, easing the pipeline infrastructure bottlenecks which are plaguing PA.

Not only that, but according to a newly published study by researchers at the Pennsylvania State University, the project could pump approximately $1.6 billion into state and local economies and support as many as 8,000 jobs during the one-year construction period. On top of that, the ongoing operation of the pipeline would generate an impressive $1.9 million in annual economic impact, supporting 29 permanent jobs.

“Penn State’s report clearly shows how vital this project and others like it are for Pennsylvania’s economy,” says Pennsylvania Chamber of Business & Industry President Gene Barr. “We need to take advantage of all of our natural resources, and the best way to do that is through more gas infrastructure.”

WILL_PipelineInfo_Economic Impact

Some key economic benefits those living in the region surrounding the Williams Atlantic Sunrise pipeline can expect:

  • $3 billion will need to be invested by Williams and a co-owner for design and construction
  • Direct expenditures will be centered in Pennsylvania, with some materials and labor sourced from other states
  • Construction is expected to result in an overall economic impact of $1.6 billion, engaging up to 8,270 workers in Pennsylvania and Virginia
  • After the multi-year construction phase is complete, the region will continue to reap the benefits of American-sourced natural gas as ongoing operations of the project are predicted to generate an annual economic impact of $1.96 million and support 29 direct and indirect jobs in two Pennsylvania counties (Columbia and Wyoming) where two new Greenfield compressor facilities are proposed
  • Significant federal, state and local taxes would also be generated during the approximate one-year construction phase, including an estimated $31 million in federal taxes and $18 million in state taxes across all county locations hosting construction activity for the project

Further demonstrating the impact of the Williams Atlantic Sunrise pipeline, it’s been found that consumers served by the Transco pipeline in the southeast and Mid-Atlantic regions could have saved $2.6 billion from 2012-2014 due to increased access to lower-priced Pennsylvania gas supply because of Atlantic Sunrise, according to a report by Penn State economist Andrew Kleit.

“Anyone who has experienced a spike in their heating bills understands the importance of this project. There is a critical need for additional pipeline capacity in the region so that northeastern consumers can realize the full benefit of lower-cost energy,” says Transco General Manager Frank Ferazzi.

The Atlantic Sunrise project is a proposed expansion of the existing Transco natural gas pipeline, which currently transports about 10 percent of the nation’s natural gas. The Atlantic Sunrise project would add about 200 miles of new pipe to expand and extend the reach of the existing Transco pipeline to northeastern Pennsylvania, transporting about 1.7 billion cubic feet of clean, natural gas per day – enough to serve about 7 million homes.

It’s a new day on the Atlantic coast. To learn more about Atlantic Sunrise and how you can express your support for U.S. energy independence, click here.

 

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.

Williams’ Atlantic Sunrise Natural Gas Pipeline Project Expected to Generate $1.6B Economic Impact, Supporting More Than 8,000 Jobs

The design and construction of the Williams Atlantic Sunrise natural gas pipeline project will generate approximately $1.6 billion in additional wages, revenues and investments to the regional and state economies of Pennsylvania and Virginia, according to a study authored by researchers at The Pennsylvania State University.

Economic Impacts of the Atlantic Sunrise Pipeline Project,” lead author Seth Blumsack Associate Professor of Energy Policy at Penn State, finds that the proposed project would have a major, positive economic impact on the Pennsylvania and Virginia economies where new pipeline facilities would be built and operated.

According to the researchers, the design and construction of the Williams Atlantic Sunrise pipeline project could support approximately 8,000 jobs and an associated $870 million in economic value added during the construction period. Additionally, the ongoing operation of the pipeline would generate approximately $1.9 million in annual economic impact, supporting 29 jobs.

The economic modeling exercise was funded by Williams and uses IMPLAN, a widely used commercial software designed to perform input-output economic analysis, to estimate impacts on workforce demands, economic output and value added to each of the counties where construction is expected to occur. IMPLAN is used by state governments across the nation for economic modeling and predicting.

In a related report titled “Estimating the Impact of the Atlantic Sunrise Project on Natural Gas Consumers,” lead author Andrew Kleit, Professor of Energy and Environmental Economics at Penn State, found that consumers served by the Transco pipeline in the southeast and Mid-Atlantic regions could have saved $2.6 billion from 2012-2014 due to increased access to lower-priced Pennsylvania gas supply because of Atlantic Sunrise.

“Penn State’s report clearly shows how vital this project and others like it are for Pennsylvania’s economy,” said Pennsylvania Chamber of Business & Industry President Gene Barr. “We need to take advantage of all of our natural resources, and the best way to do that is through more gas infrastructure. The Atlantic Sunrise expansion to the Transco pipeline is projected to support thousands of jobs during construction and thousands more in the drilling and supply chain industries. All told, we are looking at the potential for more than a billion dollars of economic activity as a result of this project.”

WILL_PipelineInfo_Economic Impact

Key findings from the analysis include:

  • The design and construction of the project will require an investment of approximately $3 billion by Williams and the co-owner of the greenfield portion of the project.
  • The majority of the direct expenditures will be in Pennsylvania, with some materials and labor sourced from other states.
  • The multi-year construction phase of the project is expected to result in overall economic impact of $1.6 billion and could engage 8,270 workers in Pennsylvania and Virginia; the 10-county Pennsylvania region of the project is expected to recognize the majority of this impact.
  • The ongoing operations of the project are predicted to generate an annual economic impact of $1.96 million and support 29 direct and indirect jobs in two Pennsylvania counties (Columbia and Wyoming) where two new Greenfield compressor facilities are proposed.
  • Significant federal, state and local taxes would also be generated during the approximate one-year construction phase, including an estimated $31 million in federal taxes and $18 million in state taxes across all county locations hosting construction activity for the project.

“Construction and ongoing operations of the project look to be economically beneficial to the counties the pipeline would cross, as well as to Pennsylvania and the region,” said Associate Professor Seth Blumsack, John and Willie Leone Family Department of Energy and Mineral Engineering, Pennsylvania State University.

The complete economic impact analysis is available at www.williams.com/atlanticsunrise. The site contains an economic impact tool that calculates economic impacts at each local level.

The Atlantic Sunrise project is a proposed expansion of the existing Transco natural gas pipeline, which currently transports about 10 percent of the nation’s natural gas. The Atlantic Sunrise project would add about 200 miles of new pipe to expand and extend the reach of the existing Transco pipeline to northeastern Pennsylvania, transporting about 1.7 billion cubic feet of clean, natural gas per day – enough to serve approximately 7 million homes.

“Anyone who has experienced a spike in their heating bills understands the importance of this project. There is a critical need for additional pipeline capacity in the region so that northeastern consumers can realize the full benefit of lower-cost energy,” said Transco General Manager Frank Ferazzi.

About Williams

Williams (NYSE: WMB) is a premier provider of large-scale infrastructure to connect North American natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams owns approximately 60 percent of Williams Partners L.P. (NYSE: WPZ), including the general-partner interest. Williams Partners is an industry-leading, large-cap master limited partnership with 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. With major positions in top U.S. supply basins and also in Canada, 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, home heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. www.williams.com

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.