Why Williams Companies bets big on long-term capital projects

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Nov. 20 2020, Updated 12:01 p.m. ET

Long-term capital projects

Williams Companies (WMB) has $30 billion in total committed and potential capital investments in Williams Partners (or WPZ) and Access Midstream Partners (or ACMP).

Constitution pipeline project

Recently, WMB’s Constitution pipeline project received the final environmental impact statement from the Federal Energy Regulatory Commission (or FERC). Through Constitution, WMB plans to start supplying natural gas to customers in the New England states this coming winter.

Rockaway lateral

The Rockaway lateral project was delayed due to environment difficulties regarding construction. It’s expected to start soon.

Canadian PDH

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WMB’s Canadian propane dehydrogenation unit (or PDH) project will go for final board approval in November. It also expects to start operations in Leidy Southeast earlier than originally planned in 4Q15. Read more about these projects in “A look into Williams Companies’ expansion plans and new projects.”

Appalachian Connector

WMB’s Appalachian Connector project is a major greenfield line. It involves connecting the panhandle of West Virginia, the northern panhandle of West Virginia, and a major liquidied natural gas (or LNG) expansion along the system.

WMB expects this to be 50% larger than its Atlantic Sunrise project. The Atlantic Sunrise project will connect natural gas supplies in the Marcellus producing region in northeastern Pennsylvania with growing demand centers along the Atlantic Seaboard. It has a $2.1 billion investment outlay.

Key stocks and exchange-traded funds (or ETFs)

Enterprise Products Partners (EPD) and Spectra Energy (SE) are also active players in the midstream energy space. Some of these companies are part of the Energy Select Sector SPDR (XLE) and the Alerian MLP ETF (AMLP).

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