The pipeline will be developed to transport Cabot’s Marcellus production to both the New England and New York markets.
Williams Partners will be a 75% owner and, through its affiliate, will operate the pipeline, while Cabot will retain a 25% equity position.
Deemed the Constitution Pipeline this high pressure pipeline will be capable of moving at least 500,000Mcf per day from the heart of Cabot’s Marcellus acreage in Susquehanna County to interconnect with both Iroquois Gas Transmission and Tennessee Gas Pipeline in Schoharie County.
The initial in service date for the system is slated for March 2015.
Cabot chairman, president and CEO Dan Dinges said the vast majority of the firm’s investment in the pipeline will be contributed during the 2014 and early 2015 time frame, when the macro environment for gas will benefit from new gas power generation and the potential for export.
"Additionally, we expect to be producing multiples of our current production volumes at that time," Dinges.
Cabot is a natural gas producer, with its entire resource base located in the continental US.
