Piedmont inks Transco gas supply deal
Piedmont Natural Gas has signed an agreement to purchase 423,400 mnBtu/day of gas from the forthcoming expansion of Williams Cos' 17.9bn ft3/day Transco pipeline, Charlotte Business Journal reported June 12.
Williams is investing $212.5mn to expand the Transco pipeline, which runs from south Texas to New York City, by the end of 2024. The expansion will focus on the North Carolina section of the pipeline, and Piedmont will be the sole customer for the additional capacity.
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The expansion will be achieved through compressor upgrades and enhancements to other infrastructure. It does not require new pipeline sections to be laid.
Piedmont did not disclose what it will pay for the increased transport capacity, but company officials say the Transco network will link up to its existing North Carolina gas pipelines, as well as an LNG storage bank and other infrastructure.
Piedmont said: "The majority of the new capacity will firm up (capacity from) an existing path Transco's interconnection with Pine Needle LNG storage facility to Piedmont's existing metering facilities in Iredell County."
"The remainder of the capacity provides additional firm service to serve eastern North Carolina and will be connected to Piedmont's existing pipeline system in that region."