Transco Looking to Ramp Up More Natural Gas Capacity on Regional Energy Access

By Jodi Shafto

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Published in: Daily Gas Price Index Filed under:

Williams' major natural gas pipeline system has requested federal approval to place more capacity into service next month on the 0.83 Bcf/d Regional Energy Access (REA), which serves Pennsylvania to New Jersey.

NGI's Transco Zone 6 non-NY spot natgas price snapshot

Transcontinental Gas Pipe Line Co. LLC (Transco) filed the request with FERC earlier this month. The project, when completed, is set to add about 829 MMcf/d into Transco’s existing interstate system, which now carries 18.6 million Dth/d.

REA was designed to expand pipeline capacity from Appalachian gas fields in Northeast Pennsylvania to delivery points in the state, as well as Maryland and New Jersey. In partial operation since late October, REA already has added 450 MMcf/d of capacity along the existing Leidy Line, which runs to Transco Zone 6 non-NY in southeastern Pennsylvania and New Jersey.

Transco expects to complete construction on additional REA facilities that could begin service in early July, adding 0.16 Bcf/d on an interim basis. Nearing completion are two gas-fired compressor units and modification of three existing units at Compressor Station 515 in Bucks County, PA. Also included are adjustments to existing infrastructure at the Princeton Junction (Station 210 Pooling Point) in Mercer County, NJ.

“These facilities are fully backfilled and will be mechanically complete by the requested in-service date,” Transco told the Federal Energy Regulatory Commission in the filing.

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In addition to equipment modifications, the project includes 22.3 miles of 30-inch diameter lateral pipeline and 13.8 miles of 42-inch diameter loop pipeline in Pennsylvania. One compressor station in New Jersey also would be built.

Williams began constructing REA in 2023. The company expects the pipeline to be fully operational once additional projects are finished by the end of the year.

“The remaining work to complete the Regional Energy Access project includes upgrading meter stations and adding horsepower at compressor stations,” a Williams spokesperson told NGI.

Gas flows on the Leidy Line through Station 515 increased by around 0.5 Bcf/d with REA’s partial startup in late-October. Total volumes averaged around 1.63 Bcf/d in May and this month have averaged about 1.84 Bcf/d, according to Wood Mackenzie data.

Northeast natural gas spot markets supplied by the REA expansion project are appearing less volatile.

Spot prices at Transco Zone 6 non-NY averaged $2.020/MMBtu from mid-October to Friday (June 14), NGI’s Daily Historical Data show. Prices spiked to a $19.00 high in January and fell as low as 90 cents in June. Prices averaged $3.526 during the same period a year earlier with volatile swings from $45.00 highs in December to a $1.00 low in May.

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Jodi Shafto

Jodi Shafto joined NGI as a Senior Natural Gas Reporter in October 2023. Before that, she was a business news reporter for South Carolina's largest daily newspaper, The Post and Courier, and was a Senior Energy Markets Reporter at S&P Global Market Intelligence. Based out of Charleston, Jodi has covered US energy markets since 2005 as a reporter, editor and analyst. A New Jersey native, she holds a BS in Journalism from Bowling Green State University.