Sad Day: NY Assassinates Another Williams Pipeline Project – NESE
We’re sad but not surprised. The last time we reported on Williams’ Northeast Supply Enhancement (NESE) Project slated for New York was last June when Williams asked the Federal Energy Regulatory Commission for a time extension to build it (see Williams Asks FERC for 3 Yr Extension to Complete NY-NJ NESE Pipe). NESE is meant to increase pipeline capacity and flows heading into northeastern markets. Both New York and New Jersey, where portions of the project would be built, pushed back against the project, causing Williams to seek time extensions with FERC. Williams has officially given up on the project and is throwing in the towel. New York just assassinated yet another pipeline project.
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Last year, Williams filed a formal application with the Federal Energy Regulatory Commission (FERC) to upgrade Transco pipeline’s capacity in Alabama and Georgia (see 
A three-judge panel from the federal D.C. Circuit spent two hours on Friday hearing arguments for and against the Federal Energy Regulatory Commission’s (FERC) approval of Williams’ Regional Energy Access Expansion (REAE) project. REAE is an expansion of the mighty Transco pipeline in Pennsylvania and New Jersey to deliver an extra 829 MMcf/d of Marcellus gas to PA, NJ, and Maryland. Part of the project was done and went online last year (see 
Last November, MDN brought you the news that pipeline giant Williams had given the green light to proceed with a new Transco pipeline expansion project called the Southeast Supply Enhancement Project (see 
Two related pipeline projects in southeast Virginia now have all regulatory approvals in hand, and the projects will soon begin construction. Columbia Gas Transmission (a subsidiary of TC Energy) applied with the Federal Energy Regulatory Commission (FERC) to build the Virginia Reliability Project (VRP), which includes two new compressor units and the replacement of existing pipeline. VRP will dig up, replace, and double the size of two sections, or about 48 miles, of the Columbia Gas pipeline between Chesapeake and Petersburg. Williams’ Commonwealth Energy Connector Project will feed VRP by building six miles of new pipeline within Transco’s existing right-of-way in Virginia, expanding a meter station, and building a 30,500-hp electric motor-drive compressor. Both projects received final approval by FERC in November (see 
Transcontinental Gas Pipe Line (Transco) is a natural gas pipeline that initially brought gas from the Gulf Coast of Texas, Louisiana, Mississippi, and Alabama, through Georgia, South Carolina, North Carolina, Virginia, Maryland, and Pennsylvania to deliver gas to the New Jersey and New York City area. It is owned and operated by Williams. With the advent of the shale revolution, Transco was converted to be bidirectional, flowing Marcellus/Utica gas south to as far as Texas. Transco now transports approximately 15% of the nation’s natural gas! It is a massive and vital pipeline. With the imminent start of the Mountain Valley Pipeline and an extra 2 Bcf/d flowing from the Marcellus to Transco’s Station 165 in Pittsylvania County, VA, how will Transco handle the extra volumes?
Some exciting news to share. Earlier this month, midstream giant Williams gave a green light to proceed with a new Transco pipeline expansion project called the Southeast Supply Enhancement. The project will flow an extra 1.4 Bcf/d (billion cubic feet per day) of Marcellus/Utica molecules southward along the Transco pipeline system, to deliver those molecules to states in the southern U.S. Mountain Valley Pipeline (MVP) will flow an extra 2 Bcf/d of M-U molecules to southern Virginia. Williams’ Southeast Supply Enhancement promises to flow some of those molecules further south (and southwest). This is a major new pipeline initiative that snuck up on us.
Pipeline giant Williams issued its third quarter update yesterday. Among the news of interest for the Marcellus/Utica was a statement by Williams CEO Alan Armstrong that the company completed the first half of Transco’s Regional Energy Access Expansion (REAE) project well ahead of schedule (on Oct. 21). The company is working with FERC to get the completed portion of the project online and flowing asap. REAE is a plan to beef up the Transco pipeline in Pennsylvania and New Jersey to deliver an extra 829 MMcf/d of Marcellus gas to PA, NJ, and Maryland. The initial portion (now complete) will flow about half that amount (see 
According to analysts writing for S&P Global Commodity Insights, the long-range forecast from the U.S. National Weather Service calls for milder temperatures in the U.S. Mid-Atlantic region this winter. Warm temps equal less natural gas usage. Williams’ Transco Regional Energy Access Expansion (REAE) project will partially come online in October, flowing an initial 450 MMcf/d (out of 829 MMcf/d) of Marcellus gas to PA, NJ, and Maryland. More supply with less demand is a classic economic prescription for lower prices in New York, New Jersey, and the Mid-Atlantic region. So says the S&P analysts.