Seneca Resources Company and Cabot Oil & Gas have made binding commitments to book 100% of the 580 million dekatherms of firm transportation capacity on the Transco interstate natural gas pipeline’s proposed Leidy South expansion project in the US.

With a network of more than 10,000 miles, the Transco pipeline is owned by Transcontinental Gas Pipe Line Co, which is a subsidiary of energy company Williams.

The companies will receive firm transportation capacity for a 15-year period. The expansion project is designed to increase the takeaway capacity in the Marcellus and Utica producing regions in Pennsylvania.

Subject to all relevant regulatory approvals, the Leidy South expansion project is expected to link the producing regions to demand centres along the Atlantic Seaboard by the fourth quarter of 2021.

The pipeline system provides natural gas to 12 Southeast and Atlantic Seaboard states, including metropolitan areas in New York, New Jersey, and Pennsylvania.

Williams noted that the Leidy South project will further expand the Transco pipeline’s capacity from the Leidy Hub and Zick interconnect to points downstream in Transco’s Zone 6 market area.

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“Since 2013, the Transco pipeline’s design capacity has grown by 62%.”

Williams Atlantic-Gulf operating area senior vice-president Frank Ferazzi said: “Since 2013, the Transco pipeline’s design capacity has grown by 62%, while its Marcellus takeaway capacity has increased by approximately three billion cubic feet per day.

“The Leidy South project allows Williams to continue to grow our strategic footprint in the gas-rich Marcellus region, creating a unique opportunity to expand Transco by leveraging recent expansions on Williams’ Northeast Gathering & Processing assets in Pennsylvania.”

As part of the expansion project, the company will undertake compression and looping of existing Transco facilities in Pennsylvania.

Furthermore, Williams will enter two lease agreements with National Fuel Gas Supply and Meade Pipeline Company for the project.

The agreement with National Fuel Gas Supply will cover Leidy Hub to Clermont, Pennsylvania, while the second deal will be from Zick to River Road on the Central Penn Line.

The binding commitments were signed after Williams placed its $3bn Atlantic Sunrise natural gas pipeline project into full service after securing approval from the US Federal Energy Regulatory Commission (FERC).

Atlantic Sunrise expands the design capacity of the Transco pipeline system to 15.8 billion cubic feet a day.