The company is investing about $180m to acquire 24% interest in the Constitution Pipeline Company, which is a natural gas pipeline project that will deliver natural gas supplies from the Marcellus supply region in northern Pennsylvania to major northeastern markets in the country.
A subsidiary of Williams Partners will be building, operating, and maintaining the 30in and 194.7km long constitution pipeline that will have a capacity to transport 650,000 dekatherms of natural gas per day.
The pipeline will be interconnected with Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, New York to supply natural gas to the east coast market of US.
Piedmont Natural Gas chairman, president, and CEO Thomas E Skains said, "Piedmont’s equity participation in the Constitution
Pipeline project aligns very well with our strategic focus on expanding our investments in complementary energy-related businesses as a means of enhancing shareholder value."
Williams Partners will hold 51% interest and ownership, Cabot Oil and Gas will have 25% share, while Piedmont through its wholly owned subsidiary, Piedmont Constitution Pipeline Company will own 24% stake in the pipeline project.
Subject to regulatory approvals, the construction of the pipeline project is expected to begin in April 2014 and operations are anticipated to commence in March 2015.
