Before the clock struck midnight for 2019, Williams successfully placed into full service its Gateway Expansion Project to meet growing demand for natural gas in the Northeastern U.S. region about 11 months ahead of schedule.
The Gateway Expansion Project is an expansion of the existing Transco pipeline system, providing 65,000 dekatherms per day of incremental firm transportation capacity to serve PSEG Power LLC and UGI Energy Services LLC.
Construction on the Gateway Expansion Project began in early 2019, with an original in-service projection of November 2020. On Dec. 31, Williams, based in Tulsa, Okla., said expedited project execution and construction in close coordination with the company’s customers contributed to the early in-service date.
In particular, the expansion will help meet growing natural gas demand for New Jersey tri-state area consumers in time for the 2019-2020 winter heating season, according to the company release.
“Natural gas plays an important role in helping to address environmental concerns about air quality and climate change,” Alan Armstrong, president and CEO of Williams, said in a statement.
According to Williams, the conversion to natural gas from heating oil is estimated to provide savings of $1,460 per year per household while also removing roughly 590,000 metric tons per year of greenhouse gas emissions. The project provides gas supply capacity to meet the daily home heating, hot water and cooking needs of about 280,000 homes, the company release said.
“The Gateway Expansion Project is a great example of how affordable natural gas can help New Jersey meet its clean energy goals, and I’m very proud of our team for their focus and careful execution of this project, which enabled us to exceed our customers’ expectations and deliver in a safe and environmentally responsible manner,” Armstrong added.
The Transco system provides natural gas services that reach U.S. markets in 12 Southeastern and Atlantic Seaboard states, including major metropolitan areas in New York, New Jersey and Pennsylvania. The system includes about 10,000 miles of pipeline between South Texas and New York City.
With the completion of the expansion, the Transco pipeline’s system-design capacity is increased to 17.3 million dekatherms per day.
Per-acre prices varied widely between $15 an acre and $11,353 an acre.
The Austin Chalk assessment, which includes the Tokio and Eutaw formations, is believed to also hold about 41.5 trillion cubic feet of natural gas, the report shows.
The wells were drilled by the Transocean Barents semisubmersible rig this summer in the Flemish Pass Basin.