Shale Gas Revolution
Tapping the vast gas reserves in the Marcellus is one thing. Getting the gas to market requires large-scale infrastructure that only the most experienced energy experts can provide.
That’s why Williams is investing $1.6 billion to help producers optimize the potential of this abundant, domestic energy source. We’re developing a major Marcellus supply hub to deliver more than 3 billion cubic feet per day of natural gas to interstate pipeline systems by 2015.
A combination of system expansions and acquisitions will comprise Williams’ Susquehanna Supply Hub in northeastern Pennsylvania, including:
- The new 120-mile Constitution Pipeline, which will connect our gathering system in Susquehanna County, Pa., to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, N.Y.
- The Laser Northeast Gathering System, which recently became part of Williams’ gathering business through an acquisition.
- The brand-new Springville pipeline, now in service, which connects our gathering system to three major interstate gas pipeline systems – our own Transco system, as well as Tennessee Gas Pipeline and Millennium Pipeline.
“We are developing all the key elements of a major new supply area hub, where we can provide Marcellus Shale producers in northeast Pennsylvania with a large-scale gathering system that has significant takeaway capacity to the best available markets,” said Alan Armstrong, president and CEO. “It’s key to our strategy of providing large-scale infrastructure and continuing to build on our significant fee-based midstream and gas pipeline businesses.”
Constitution Pipeline initially will be designed to transport at least 500,000 dekatherms per day of Cabot’s Marcellus production, but will be expandable to meet growing demand for takeaway capacity in northeast Pennsylvania.
Williams Partners will own 75 percent of Constitution Pipeline and, through its affiliates, will provide construction, operation and maintenance services for the new pipeline. Our customer and joint venture partner, Cabot, will own the remaining 25 percent.
Our gathering system in northeastern Pennsylvania currently covers three counties and has a capacity of 750 million cubic feet per day (MMcf/d).
Note: Most of Williams’ midstream and interstate gas pipeline assets are owned by Williams Partners L.P. (NYSE:WPZ), one of the largest energy master limited partnerships in the country. Williams owns approximately 72 percent of Williams Partners, including the general partner interest.