Williams Partners L.P. announced two major milestones in its strategy to create a major natural gas supply hub in northeastern Pennsylvania. Williams owns 72 percent of Williams Partners.
First, Williams Partners is forming a new interstate gas pipeline joint venture with Cabot Oil & Gas Corporation to construct the 120-mile Constitution Pipeline to connect Williams Partners’ gathering system in Susquehanna County, PA, to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, NY. Williams Partners will own 75 percent of Constitution Pipeline and, through its affiliates, will provide construction, operation and maintenance services for the new pipeline. Cabot will own the remaining 25 percent.
The new pipeline will initially be designed to transport at least 500,000 Dth/d of Cabot’s Marcellus production, but will be expandable to meet growing demand for takeaway capacity in northeast Pennsylvania.
Constitution Pipeline will be regulated by the Federal Energy Regulatory Commission (FERC). Williams Partners expects to initiate the FERC application process soon.