Williams Announces Transco’s Southside Reliability Enhancement Now in Full Service as Demand Loads for Heating Season Ramp Up

Rhea-AI Summary

Williams (NYSE: WMB) has fully activated the Southside Reliability Enhancement project, expanding Transco's pipeline capacity in North Carolina and Virginia. The expansion adds 423,400 dekatherms per day of contracted capacity, serving over 2 million homes. The project comes online during peak demand, with Transco achieving an all-time peak of 17.77 million dekatherms on December 22.

The enhancement includes a new electric compressor station in Mecklenburg County, VA, additional compression at Station 166 in Pittsylvania County, VA, and upgrades to meter stations in North Carolina. The expansion increases Transco's system-design capacity to 19.9 million dekatherms per day. The project maximized existing infrastructure to minimize environmental impact while meeting growing demand for natural gas in the Carolinas.

Positive

• Added 423,400 dekatherms per day of fully contracted pipeline capacity
• Achieved new all-time peak delivery record of 17.77 million dekatherms
• Increased system-design capacity to 19.9 million dekatherms per day
• Maximized existing infrastructure to reduce environmental impact
• Successfully completed project on time

Negative

• None.

Insights

Energy Infrastructure Analyst

The Southside Reliability Enhancement project represents a significant capacity expansion of 423,400 dekatherms per day, strategically positioned to serve growing energy demands in the Southeast. The project's timing is particularly crucial, coinciding with record-breaking system loads - notably the December 22 peak of 17.77 million dekatherms.

The expansion increases Transco's system-design capacity to 19.9 million dekatherms per day, reinforcing its position as America's largest-volume natural gas pipeline system. The implementation of all-electric compressor stations aligns with environmental objectives while maintaining operational efficiency. This infrastructure enhancement is particularly valuable given the surge in natural gas demand driven by three key factors: LNG exports, data center growth and industrial reshoring.

The project's execution through existing corridors and facility expansions demonstrates optimal capital efficiency while minimizing environmental impact. This approach typically results in faster regulatory approvals and better returns on invested capital.

Utility Market Specialist

The completion of this expansion project is well-timed with peak winter demand, as evidenced by the new three-day peak record exceeding 50 million dekatherms. The New York market's consumption of 2.2 million dekatherms on December 22 underscores the critical nature of this infrastructure enhancement.

The project's ability to serve over 2 million homes strengthens Williams' market position in the Southeast, where natural gas demand continues to grow. The fully contracted nature of the additional capacity suggests strong revenue visibility and stable cash flows. This expansion, combined with the Regional Energy Access project and Mountain Valley Pipeline Interconnect, positions Williams favorably for capturing increased market share in the natural gas transmission sector.

TULSA, Okla.--(BUSINESS WIRE)-- Williams (NYSE: WMB) announced today that it has placed into full service the Southside Reliability Enhancement, an important expansion and modernization of Transco in North Carolina and Virginia that provides additional natural gas capacity to meet growing demand for affordable, reliable and clean energy in the region. The project adds a total of 423,400 dekatherms per day (Dth/d) of fully contracted pipeline capacity, providing the ability to meet the clean energy needs of more than 2 million homes in the region.

“The on-time completion of this latest project underscores our team’s ability to execute large-scale expansions in a careful, efficient, safe and environmentally responsible manner,” said Alan Armstrong, president and chief executive officer for Williams. “Our entire team continues to execute on a full portfolio of transmission growth projects to meet accelerating natural gas demand in the United States for LNG exports, power generation from data center load growth and the reshoring of energy intensive manufacturing that is taking advantage of low-cost natural gas supplies here at home.”

Southside Reliability Enhancement comes online as demand loads for this heating season have ramped up quickly, with the Transco system experiencing record and near-record loads already this month. Notably, Transco achieved an all-time peak day on Dec. 22 with a total volume of 17.77 million dekatherms (Dth) that surpassed the previous peak day set on Dec. 6. In New York, Transco delivered peak loads of more than 2.2 million Dths on Dec. 22, marking the highest levels observed in the past several years. Transco also set a new, all-time three-day peak of just over 50 million Dths, surpassing the previous record set in January 2024.

“Continued demand growth, completion of the Southside Reliability Enhancement in addition to our recent Regional Energy Access project, and in-service of the Mountain Valley Pipeline Interconnect continue to support strong system growth for the heating season,” said Armstrong. “The recent frigid conditions across the Northeast are an important reminder of the vital role transmission pipelines play in delivering the natural gas necessary to keep millions of Americans safe and secure, especially during winter periods of peak demand. The value of reliable natural gas infrastructure is not always recognized until low-cost energy is needed most and I appreciate our teams for their dedication to keeping our operations running smoothly around the clock.”

By maximizing the use of the existing Transco transmission corridor and expanding existing facilities, the Southside Reliability Enhancement project enabled a substantial reduction in required facilities and land use – minimizing community and environmental impact and allowing additional natural gas volumes to be transported to meet growing demand in North and South Carolina. An abundant, reliable supply of natural gas is critical to help reduce carbon emissions and provide the flexibility needed to support a growing renewables component in power generation.

The project included the construction of a new, all electric compressor station in Mecklenburg County, Virginia and additional all-electric compression at the existing Station 166 in Pittsylvania County, Virginia. It also involved upgrades and enhancements to existing meter stations in Iredell, Northampton and Hertford counties in North Carolina.

With this expansion, the Transco pipeline’s system-design capacity has increased to 19.9 million Dths of natural gas per day. Williams owns and operates Transco, an approximately 10,200-mile natural gas transportation system that extends from south Texas to New York City. The Transco pipeline is the nation’s largest-volume natural gas pipeline system, transporting about 20% of the natural gas produced in the U.S.

About Williams

Williams (NYSE: WMB) is a trusted energy industry leader committed to safely, reliably, and responsibly meeting growing energy demand. We use our 33,000-mile pipeline infrastructure to move a third of the nation’s natural gas to where it's needed most, supplying the energy used to heat our homes, cook our food and generate low-carbon electricity. For over a century, we’ve been driven by a passion for doing things the right way. Today, our team of problem solvers is leading the charge into the clean energy future – by powering the global economy while delivering immediate emissions reductions within our natural gas network and investing in new energy technologies. Learn more at www.williams.com.

Portions of this document may constitute “forward-looking statements” as defined by federal law. Although Williams 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 Williams’ annual and quarterly reports filed with the SEC.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241230844553/en/

MEDIA:

media@williams.com

(800) 945-8723

INVESTOR CONTACT:

Danilo Juvane

(918) 573-5075

Caroline Sardella

(918) 230-9992

Source: Williams

FAQ

What is the new capacity added by WMB's Southside Reliability Enhancement project?

The project adds 423,400 dekatherms per day of fully contracted pipeline capacity, enough to serve over 2 million homes in the region.

What record did Transco (WMB) achieve on December 22, 2023?

Transco achieved an all-time peak day delivery of 17.77 million dekatherms on December 22, surpassing the previous record.

What is the new system-design capacity of WMB's Transco pipeline after the enhancement?

The Transco pipeline's system-design capacity has increased to 19.9 million dekatherms of natural gas per day.

What infrastructure improvements were made in WMB's Southside Reliability Enhancement project?

The project included a new electric compressor station in Mecklenburg County, VA, additional compression at Station 166 in Pittsylvania County, VA, and upgrades to meter stations in Iredell, Northampton, and Hertford counties in North Carolina.

How much of US natural gas production does WMB's Transco pipeline transport?

The Transco pipeline system transports approximately 20% of the natural gas produced in the United States.