U.S. federal energy regulators on Oct. 4 approved a request by Williams Cos. Inc.'s (NYSE: WMB) Transcontinental Gas Pipe Line Co (Transco) unit to put the Atlantic Sunrise natural gas pipeline from Pennsylvania to South Carolina into service.
Atlantic Sunrise is one of several pipelines designed to connect growing output in the Marcellus and Utica shale basins in Pennsylvania, West Virginia and Ohio with customers in other parts of the U.S. and Canada.
VIDEO: Atlantic Sunrise Is Given Its Finishing Touches
The U.S. Federal Energy Regulatory Commission (FERC) said in a filing approving the startup of the nearly $3 billion project that Transco has "adequately stabilized the areas disturbed by construction and that restoration is proceeding satisfactorily."
The 1.7 billion-cubic-feet-per-day (Bcf/d) Atlantic Sunrise project includes about 198 miles (319 km) of new pipe located mostly in Pennsylvania, two new compressor stations and compressor station modifications in five states.
One billion cubic feet is enough gas to power about 5 million U.S. homes for a day.
Cabot Oil & Gas Corp. (NYSE: COG) has secured about 1 Bcf/d of transport capacity on Atlantic Sunrise.
New pipelines built to remove gas from the Marcellus and Utica basins have enabled shale drillers to boost output in the Appalachia region to a forecast record high of around 29.4 Bcf/d in October 2018 from 24.2 Bcf/d during the same month a year earlier.
That represents about 36% of the nation's total dry gas output of 81.1 Bcf/d expected on average in 2018. A decade ago, the Appalachia region produced just 1.6 bcfd, which was only 3% of the nation's total production in 2008.
RELATED: The Dawn Of Atlantic Sunrise
Williams said it started laying new pipe in Pennsylvania in September 2017. FERC authorized construction of the project in February 2017.
Recommended Reading
TPG Adds Lebovitz as Head of Infrastructure for Climate Investing Platform
2024-02-07 - TPG Rise Climate was launched in 2021 to make investments across asset classes in climate solutions globally.
Air Products Sees $15B Hydrogen, Energy Transition Project Backlog
2024-02-07 - Pennsylvania-headquartered Air Products has eight hydrogen projects underway and is targeting an IRR of more than 10%.
NGL Growth Leads Enterprise Product Partners to Strong Fourth Quarter
2024-02-02 - Enterprise Product Partners executives are still waiting to receive final federal approval to go ahead with the company’s Sea Port Terminal Project.
Sherrill to Lead HEP’s Low Carbon Solutions Division
2024-02-06 - Richard Sherill will serve as president of Howard Energy Partners’ low carbon solutions division, while also serving on Talos Energy’s board.
Magnolia Appoints David Khani to Board
2024-02-08 - David Khani’s appointment to Magnolia Oil & Gas’ board as an independent director brings the board’s size to eight members.