Most recent pipeline expansion announcements are normally quite low-key when the new line is built on an existing pipeline corridor; however, many people in the Southeast and Mid-Atlantic regions have taken great interest in the recent announcement by Williams Companies, Inc. to add large amounts of additional capacity to its system. The initial plans for this expansion appear to be a typical capacity addition.
The expansion of the SSE appears to be a normal extension of the existing natural gas system
As one digs into the details, it becomes apparent that the expansion will represent a major shift in the region’s energy infrastructure.
The size of the expansion clearly demonstrates that the Williams Companies’ expansion is larger than a mere extension of an existing natural gas system; therefore, the expansion demonstrates that there will likely be a much greater investment in the energy infrastructure of the region.
The expansion of the Southeast Supply Enhancement (SSE), which is expected to add approximately 1.6 million dekatherms per day of capacity to the existing pipeline system, is sufficient to provide natural gas to approximately 9.8 million homes. This additional capacity will allow for the growth of electricity generation using natural gas as a cleaner alternative to coal, and the growth of other uses of natural gas.
Therefore, although Williams Companies stated that their expansion was to add capacity to support growing electricity generation requirements, the scale of the expansion also illustrates that Williams Companies is prepared to invest in the natural gas infrastructure of the region to allow natural gas to become a primary source of energy in the region.
The expansion also provides evidence of the size and reach of the project
The expansion will include over 55 miles of looped pipeline located across Virginia and North Carolina, adjacent to existing Transco pipelines. In addition to the pipeline loops, Williams Companies will install new and modify existing compressors in several states:
- Pittsylvania County, Virginia – New compressor units at Station 165.
- Rockingham, Guilford, Forsyth & Davidson Counties, North Carolina – Pipeline looping, in addition to new and modified compressor stations at Stations 145, 150, and 155.
- Anderson County, South Carolina – Reversal of a compressor station.
- Walton & Henry Counties, Georgia – Reversal of two compressor stations and regulatory work.
- Coosa County, Alabama – Modification of a compressor station.
These upgrades illustrate the expanded capacity and ability to adapt to changes in the flow of natural gas through the regional grid to accommodate changes in electricity generation, industrial use, and pressure from downstream markets.
The economic footprint of the expansion is also significant. Williams Companies anticipates more than 3,000 direct and indirect jobs related to the project, and expects the project to have a total of $1.2 billion invested into the economy and generate more than $926 million in economic impact.
The expansion appears to be simply one piece of a much larger, unannounced expansion
These job creation and investment numbers demonstrate that the project is not only an expansion of the natural gas infrastructure in the region, but an economic development tool.
Williams Companies notes that they continuously monitor their system on a 24/7 basis, upgrade and improve their system, and prepare for continued growth in demand for natural gas for electric generation, manufacturing, and population growth throughout the region.
Rather than announcing a single, broad-based new national pipeline, Williams Companies is building numerous, smaller-scale targeted additions to its Transco system. The cumulative effect of these projects is to slowly and deliberately increase the capacity of the backbone of natural gas delivery from Texas to the eastern seaboard. Ultimately, Williams Companies’ expansion of the Southeast Supply Enhancement (SSE) represents more than simply an increase in the capacity of its natural gas delivery system.
