Williams has filed an application with the Federal Energy Regulatory Commission to expand its Transco natural gas pipeline to serve markets in the southeastern United States.

New service from the Mobile Bay South project would be available in the second quarter of 2010, subject to FERC approval. The project is designed to create 253,500 dekatherms of southbound, year-round firm transportation capacity on the Mobile Bay Lateral from Transco's mainline at Station 85 near Butler, Ala., to its interconnect with Gulfstream Natural Gas System in Coden, Ala.

"Combined with our Station 85 North expansion, the Mobile Bay South project creates over half a billion cubic feet of take-away capacity from Station 85 to downstream markets," said Phil Wright, president of Williams' natural gas pipeline business.

"The Mobile Bay South project will enable us to provide firm southbound transportation service for growing domestic supplies from new pipeline interconnects at Station 85 to markets in Southwest Alabama and Florida, as well as third-party storage facilities. In addition, it will allow us to maintain the current capacity of the lateral to supply our traditional customers through northbound service to Station 85."

The Mobile Bay South project will require construction of a new 9,470 horse power compressor facility at Station 85 in Choctaw County, Ala. Williams estimates that the project facilities will cost approximately $37 million.

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