WGL Holdings Inc., through its subsidiary WGL Midstream Inc., is the lead investor in an agreement with three other parties to create a company that will jointly develop and own, together with Transcontinental Gas Pipe Line Co. LLC, the Central Penn Line, a 177-mile pipeline originating in Susquehanna County, PA and extending to Lancaster County, PA. The Central Penn Line is the greenfield pipeline segment of Transco’s recently announced Atlantic Sunrise project which currently has a projected in-service date in the second half of 2017.
As part of the agreement, WGL Midstream will invest $410 million, resulting in a majority ownership interest in the company that will co-own the Central Penn Line with Transco.
The Central Penn Line, as part of Atlantic Sunrise, is a natural gas pipeline project designed to provide new firm gas transportation capacity from various supply points in northeast Pennsylvania to a delivery point into Transco’s mainline in southeast Pennsylvania. The pipeline will have the capacity to transport and deliver up to 1.7 MMDth/d of natural gas.
The Central Penn Line will be part of a transformational project in light of the increased production of natural gas in the Marcellus region, particularly in northern Pennsylvania. The project will be instrumental in addressing the current challenge of transporting natural gas from an area with abundant supply to existing established markets.
According to media outlets, the company has filed with FERC to seek approval for construction.