Commencing with the in-service date of Transco’s Atlantic Sunrise expansion project currently scheduled for in-service in the second half of 2017, the gas sale and purchase agreement will provide for 500,000 MMBtu per day of natural gas to be sold to WGL for a primary term of 15 years.
As part of the precedent agreement, Transco will build and operate around 177 miles of new pipeline namely Central Penn Line from the Zick area of Susquehanna county to an interconnect with its mainline in Lancaster county, Pennsylvania.
Cabot, which will own 850,000 MMBtu per day of firm capacity on Atlantic Sunrise, will also be participating as an equity owner.
Cabot Oil & Gas president and CEO Dan Dinges said the project is very unique, in which the producer, pipeline and market have collectively combined resources to accomplish the individual goals of each party.
"Specifically for Cabot, we secure the optimal path for our previously announced Cove Point volumes (350,000 MMBtu per day) and add another sizeable agreement to our portfolio of long-term sales contracts, while utilizing a portion of our future anticipated free cash flow to invest in another infrastructure project," Dinges added.
