A look into Williams Companies’ expansion plans and new projects

Market Realist

Everything investors need to know about Williams Companies (Part 8 of 12)

(Continued from Part 7)

Marcellus Shale–Susquehanna supply hub expansion

Williams Partners (WPZ) is building a gathering system in Northeast Pennsylvania to cater to increased production from the Marcellus Shale.

It plans to have 3 billion cubic feet per day of natural gas takeaway capacity at this hub. The hub will connect to Williams’ three interstate pipelines—Transco, Tennessee, and Millennium—as the picture above shows.

Key customers

Cabot Oil & Gas (COG), WPX Energy (WPX), and Carrizo-Reliance are the project’s major customers.


Other major projects

  • Mobile Bay South III: A pipeline project, it has a capacity of 225 thousand dekatherms per day with $50 million estimated capital expenditure. It’s expected to be completed by 2015.
  • Virginia Southside: A 99-mile pipeline project with projected capacity of 270 thousand dekatherms per day, with $300 million estimated capex.
  • Hillabee expansion: Expected to be completed by 2017, the pipeline looping and compression project will have an initial capacity of 818 thousand dekatherms per day and estimated capex of $280 million. In pipeline looping, another pipeline runs parallel to an existing pipeline for right-of-way and safety reasons.
  • Dalton expansion: With 448 thousand dekatherms per day in capacity and $275 million in capex, the greenfield pipeline and compression project is expected to be installed by 2017.

A key snapshot of new projects

This part clearly highlights the strong expansions and new projects that Williams Companies (WMB) has planned for the future. Indeed, WMB touts itself as being “well-positioned to participate in once-in-a-generation industry supercycle.”

Key stocks and ETFs

WMB is a component of the Energy Select Sector SPDR (XLE). Other companies in the midstream energy processing and transportation space include Kinder Morgan Energy Partners (KMP) and Spectra Energy Corporation (SE). Some of these companies are components of XLE and the Alerian MLP ETF (AMLP).

Continue to Part 9

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