TRANSCO Gas Pipeline
Still a Leader
Transco Compressor Station 160 at Reidsville, North Carolina, recently was awarded recertification by the Wildlife Habitat Council. Many of the station's employees serve on a wildlife beautification committee, donating their time to turn much of the area into an official wildlife habitat. Their efforts have been recognized with the North Carolina Governor's Cup.
Transcontinental Gas Pipe Line's (Transco's) 10,500-mile system provides interstate natural gas transportation from the Gulf Coast to markets in eastern and southeastern states. System design capacity is 6.4 Bcfd; seasonal storage capacity is 219 Bcf. Transco was not part of Williams prior to 1995.
W hatever it takes. Forty-seven years ago, "whatever it takes" meant constructing the longest natural gas pipeline in the world. Today, Transco is at it again, doing whatever it takes to provide customers with the most reliable service in the natural gas transportation industry. As one of The Williams Companies, we are entering an era filled with growth and opportunity. Our company has come a long way since its historic beginnings. Yet, the same commitment to provide customers with timely, dependable service remains at the heart of our operations.
| Selected Financial Data (dollars in millions) | 1995** | ||
| Revenues | $725.30 | ||
| Operating profit | 165 | ||
| Identifiable assets* | 3,159.50 | ||
| Operating profit as % of average assets | 5.10% | ||
| Capital expenditures | 238.7 | ||
| Depreciation | 109.1 | ||
| Operating Statistics | |||
| Throughput (TBtu) | 1,411 | ||
| Employees (December 31) | 1,471 | ||
| *Defined in Note 16 of the Notes to Consolidated Financial Statements, page 53. | |||
| **These amounts include Transcontinental Gas Pipe Line's operations and statistics since January 18, 1995. | |||
Key Points
- The 1995 acquisition of Transco Energy by Williams allowed us to restart our mighty engine of growth. Financially constrained prior to the merger and major recapitalization program, we sprinted forward on the following projects, which will substantially increase capacity, expand market presence and help ensure long-term vitality of our system: - SunBelt, $85 million expansion, 145 MMcfd additional capacity, serving customers in North and South Carolina. Projected service: 1997 heating season. - SeaBoard, $115 million expansion, 115 MMcfd of additional capacity from our Leidy hub in Pennsylvania to certain delivery points on our system. Projected serv ice: 1997 heating season. - Pine Needle, $107 million lique fied natural gas (LNG) storage project, 4 Bcf storage and 400 MMcfd withdrawal capability. Several major customers are participating in this North Carolina project. We will operate the facility and own a 35 percent interest in it. Projected withdrawal service: 1999 heating season. - Cardinal Pipeline, $97 million project involving acquisition of an existing 37-mile line from our Reids ville, N.C., station to Burlington, and construction of a 65-mile extension to Raleigh. Transco and several major customers are participating; our share of the project is $22 million. Pro jected service: 1999 heating season.
- In fourth-quarter 1996, we will complete the final 55 MMcfd portion of our 205 MMcfd Southeast Expan sion, serving markets in Alabama, Georgia, the Carolinas and Virginia. The second phase, 115 MMcfd, of this project came on line December 1995.
- We expect 1996 results to improve because of cost containment and improved practices, coupled with the effect of the Southeast Expansion. Our aggressive expansion activities will increase our presence and capabilities in key growth markets, while LNG storage projects will enable us to provide value-added services to existing and new customers. Other projects are coming; as recently as January 1996, we announced yet another major LNG project in our northern market area encompassing Pennsylvania, New Jersey, Delaware and New York.
