TULSA, Okla.--(BUSINESS WIRE)--Williams (NYSE: WMB) today announced that the design and construction of the Williams Atlantic Sunrise natural gas pipeline project will generate approximately $1.6 billion in additional wages, revenues and investments to the regional and state economies of Pennsylvania and Virginia, according to a study authored by researchers at The Pennsylvania State University.
“Economic Impacts of the Atlantic Sunrise Pipeline Project,” lead author Seth Blumsack, Associate Professor of Energy Policy at Penn State, finds that the proposed project would have a major, positive economic impact on the Pennsylvania and Virginia economies where new pipeline facilities would be built and operated.
According to the researchers, the design and construction of the Williams Atlantic Sunrise pipeline project could support approximately 8,000 jobs and an associated $870 million in economic value added during the construction period. Additionally, the ongoing operation of the pipeline would generate approximately $1.9 million in annual economic impact, supporting 29 jobs.
The economic modeling exercise was funded by Williams and uses IMPLAN, a widely used commercial software designed to perform input-output economic analysis, to estimate impacts on workforce demands, economic output and value added to each of the counties where construction is expected to occur. IMPLAN is used by state governments across the nation for economic modeling and predicting.
In a related report titled “Estimating the Impact of the Atlantic Sunrise Project on Natural Gas Consumers,” lead author Andrew Kleit, Professor of Energy and Environmental Economics at Penn State, found that consumers served by the Transco pipeline in the southeast and Mid-Atlantic regions could have saved $2.6 billion from 2012-2014 due to increased access to lower-priced Pennsylvania gas supply because of Atlantic Sunrise.
“Penn State’s report clearly shows how vital this project and others like it are for Pennsylvania’s economy,” said Pennsylvania Chamber of Business & Industry President Gene Barr. “We need to take advantage of all of our natural resources, and the best way to do that is through more gas infrastructure. The Atlantic Sunrise expansion to the Transco pipeline is projected to support thousands of jobs during construction and thousands more in the drilling and supply chain industries. All told, we are looking at the potential for more than a billion dollars of economic activity as a result of this project.”
Key findings from the analysis include:
- The design and construction of the project will require an investment of approximately $3 billion by Williams and the co-owner of the greenfield portion of the project.
- The majority of the direct expenditures will be in Pennsylvania, with some materials and labor sourced from other states.
- The multi-year construction phase of the project is expected to result in overall economic impact of $1.6 billion and could engage 8,270 workers in Pennsylvania and Virginia; the 10-county Pennsylvania region of the project is expected to recognize the majority of this impact.
- The ongoing operations of the project are predicted to generate an annual economic impact of $1.96 million and support 29 direct and indirect jobs in two Pennsylvania counties (Columbia and Wyoming) where two new greenfield compressor facilities are proposed.
- Significant federal, state and local taxes would also be generated during the approximate one-year construction phase, including an estimated $31 million in federal taxes and $18 million in state taxes across all county locations hosting construction activity for the project.
“Construction and ongoing operations of the project look to be economically beneficial to the counties the pipeline would cross, as well as to Pennsylvania and the region,” said Associate Professor Seth Blumsack, John and Willie Leone Family Department of Energy and Mineral Engineering, Pennsylvania State University.
The complete economic impact analysis is available at www.williams.com/atlanticsunrise. The site contains an economic impact tool that calculates economic impacts at each local level.
The Atlantic Sunrise project is a proposed expansion of the existing Transco natural gas pipeline, which currently transports about 10 percent of the nation’s natural gas. The Atlantic Sunrise project would add about 200 miles of new pipe to expand and extend the reach of the existing Transco pipeline to northeastern Pennsylvania, transporting about 1.7 billion cubic feet of clean, natural gas per day – enough to serve approximately 7 million homes.
“Anyone who has experienced a spike in their heating bills understands the importance of this project. There is a critical need for additional pipeline capacity in the region so that northeastern consumers can realize the full benefit of lower-cost energy,” said Transco General Manager Frank Ferazzi.
About Williams
Williams (NYSE: WMB) is a premier provider of large-scale infrastructure to connect North American natural gas and natural gas products to growing demand for cleaner fuel and feedstocks. Headquartered in Tulsa, Okla., Williams owns approximately 60 percent of Williams Partners L.P. (NYSE: WPZ), including the general-partner interest. Williams Partners is an industry-leading, large-cap master limited partnership with operations across the natural gas value chain from gathering, processing and interstate transportation of natural gas and natural gas liquids to petchem production of ethylene, propylene and other olefins. With major positions in top U.S. supply basins and also in Canada, Williams Partners owns and operates more than 33,000 miles of pipelines system wide – including the nation’s largest volume and fastest growing pipeline – providing natural gas for clean-power generation, home heating and industrial use. Williams Partners’ operations touch approximately 30 percent of U.S. natural gas. www.williams.com
Portions of this document may constitute “forward-looking statements” as defined by federal law. Although the company believes any such statements are based on reasonable assumptions, there is no assurance that actual outcomes will not be materially different. Any such statements are made in reliance on the “safe harbor” protections provided under the Private Securities Reform Act of 1995. Additional information about issues that could lead to material changes in performance is contained in the company’s annual reports filed with the Securities and Exchange Commission.
