Pipeline projects like this Rock Springs expansion are serving the long-term natural gas needs of LDCs, electric power generation, LNG and industrial loads.
Buoyed by its focus on fee-based revenue, Williams Partners recorded another strong quarter, demonstrating excellent operational performance and the resilience of our business to grow despite sharply lower commodity prices.
Even with reduced activities in supply areas, the partnership enjoyed continued growth in fee-based revenues primarily from demand-driven projects and expansions brought into service.
Said Alan Armstrong, CEO of Williams Partners’ general partner: “Low natural gas prices continue to spur demand-based growth on Transco and our other interstate pipelines. As a result, our 2016 growth investments are primarily focused on serving the long-term natural gas needs of local distribution companies, electric power generation, LNG and industrial loads.”
What are fee-based revenues? Under a fee-based contract, processors and transmission pipelines receive a fee based on how much gas they gather, transport or process, also referred to as “throughput volumes.”
Read more in today’s news release.