Williams Partners L.P. (WPZ), the master limited partnership (MLP) of Williams Companies Inc. (WMB), got the Federal Energy Regulatory Commission (FERC) nod to expand a pipeline in the southeastern region of the U.S.
The approval entitles the partnership to serve the evolving markets of LaGrange City in Georgia, Progress Energy Carolinas, Inc., and Southern Company Services, Inc. with an added capacity of 225,000 dekatherms of natural gas in its Transco natural gas pipeline. The expansion project involves about 23 miles of new pipeline, a new compressor facility in Alabama and upgrade of the existing compressor facilities in Alabama, Georgia, South Carolina and North Carolina.
The project, which will cost about $217 million, will be carried out in two phases. Under the first phase, 95,000 dekatherms of natural gas will be made operational by fall 2012. The balance 130,000 dekatherms will be placed into service in summer 2013 in the subsequent phase.
The 10,000-mile Transco pipeline currently has a capacity of about 9.6 million dekatherms (9.3 billion cubic feet) per day and serves the Southeast, Mid-Atlantic and Northeast markets. We believe the latest regulatory approval gives the partnership a boost in its geographically diverse midstream portfolio.
Williams Partners is an energy MLP occupied in gathering, transportation, treating, and processing of natural gas as well as the fractionation and storage of natural gas liquids. We see the partnership as well positioned for future growth owing to its geographically diverse assets, a sizable project backlog as well as sound distribution history.
The partnership’s gas pipeline and midstream businesses continue to progress on a number of ongoing organic expansion projects, along with major growth initiatives in the Gulf of Mexico, Marcellus Shale and Piceance Basin.
Williams Partners, which retains a Zacks #3 Rank (short-term Hold rating), competes with Enterprise Products Partners LP (EPD) and Kinder Morgan Energy Partners, L.P. (KMP).
ENTERPRISE PROD (EPD): Free Stock Analysis Report
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WILLIAMS COS (WMB): Free Stock Analysis Report
WILLIAMS PTNRS (WPZ): Free Stock Analysis Report
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