Date: Thu, 18 Dec 1997 21:19:15 GMT Server: Apache/1.2.1 Last-Modified: Tue, 01 Apr 1997 10:58:06 GMT ETag: "f779c-1432-3340ea3e" Content-Length: 5170 Accept-Ranges: bytes Connection: close Content-Type: text/html
Transco and AGL Resources Announce
Formation of Cumberland Pipeline Company
HOUSTON, December 19, 1996--Transcontinental Gas Pipe Line Corporation (Transco) and AGL Resources Inc. have signed a letter of intent to form a joint venture to be known as Cumberland Pipeline Company. The transaction is subject to various corporate and regulatory approvals.
The 135-mile Cumberland pipeline will initially consist of existing pipeline infrastructure owned by the two companies and extending from Transco's mainline in Walton County, Ga., to Atlanta Gas Light Company's interconnect with East Tennessee Natural Gas Company in Catoosa County, Ga. The existing facilities will be expanded northward into the state of Tennessee. The pipeline will provide service to Atlanta Gas Light Company, Chattanooga Gas Company and other markets throughout the eastern Tennessee Valley.
"We are very pleased to have formed an alliance with a company of the standing of AGL Resources and we look forward to aggressively providing service to the growing markets in Georgia and Tennessee," said Cuba Wadlington Jr., senior vice president and general manager, Transco. "Cumberland will enable both AGL Resources and Transco to combine our marketing and regulatory expertise to form a new customer-oriented pipeline supplier to the region."
"Cumberland is uniquely positioned to provide additional competitive alternatives for Atlanta, Chattanooga and others in a growing market," said David R. Jones, president and chief executive officer of AGL Resources. "We are pleased that we have a partner with the experience to operate and market interstate pipeline capacity successfully. Together we will provide an unwavering commitment to superior customer service."
Projected to enter service by Nov. 1, 2000, Cumberland combines Transco's 27-mile Suwanee lateral, extending from Walton County to Gwinnett County, Ga., and Atlanta Gas Light Company's 108-mile mainline, extending from Gwinnett County to Catoosa County. Additional looping and compression will expand Cumberland's capacity to approximately 450 million cubic feet per day.
Expansion facilities will include an extension into the state of Tennessee to provide direct service to Chattanooga Gas Company and other downstream markets.
To complement the Cumberland project, Transco will offer additional pipeline capacity from the terminus of its existing Mobile Bay Lateral in Choctaw County, Ala., to its interconnect with Cumberland at Transco's proposed Station 125 in Walton County.
Costs of the proposed joint venture have not been finalized. Affiliates of Transco and AGL Resources will own 50 percent of the new interstate pipeline, with an affiliate of Transco serving as the operator.
Cumberland Pipeline Company plans to hold an open season in the summer of 1997. The project will be submitted to the Federal Energy Regulatory Commission for approval in the fourth quarter of 1997.
Transco, one of The Williams Companies, owns and operates a 10,000-mile natural gas pipeline system that extends from the Gulf of Mexico to New York City. The Williams Companies consists of the nation's largest-volume system of interstate natural gas pipelines; business units offering a complete array of traditional and leading-edge energy solutions; and single-source providers of national business communications systems and international satellite and fiber-optic video services (NYSE:WMB). Transco information is available on the World Wide Web at http://www.tgpl.com.
AGL Resources, the holding company of Atlanta Gas Light Company -- the largest natural gas distribution company in the Southeast -- is engaged in a wide variety of energy-related businesses, including natural gas distribution, natural gas and power marketing, wholesale and retail propane sales, energy management services and energy-related consumer products (NYSE:ATG).
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