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Williams expects to win Energy Transfer dispute on Louisiana natgas pipe
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Williams expects to win Energy Transfer dispute on Louisiana natgas pipe
May 7, 2024 10:01 AM

May 7 (Reuters) - U.S. energy firm Williams Cos ( WMB )

said on Tuesday it still expects to overcome a pipeline dispute

with rival Energy Transfer ( ET ) and complete its Louisiana

Energy Gateway natural gas project in the second half of 2025.

The companies are in dispute over whether Williams

proposed pipes can cross pipes owned by Energy Transfer ( ET ).

Williams previously said the 1.8-billion cubic feet per day

(bcfd) pipeline was originally set to come online this year, but

the project was delayed to the second half of 2025 following the

dispute with Energy Transfer ( ET ).

"It's unfortunate that we're having these delays, but I'm

very confident in our ability to finish this project ... We

still expect the second half 2025 in service date," Williams

Chief Operating Officer Micheal Dunn told analysts as part of an

earnings presentation.

The project, which is under construction in Louisiana and

Texas, will feed gas from the Haynesville shale field to the

Gulf Coast where demand for the fuel is growing to supply

several liquefied natural gas (LNG) export plants expected to

enter service over the next few years.

Officials at Energy Transfer ( ET ) were not immediately available

for comment.

Other energy firms, including Momentum Midstream and DT

Midstream ( DTM ) , have fought with Energy Transfer ( ET ) in

court, accusing Energy Transfer ( ET ) of "blocking" their pipeline

projects by not allowing them to cross Energy Transfer's ( ET )

pipelines in the area.

"I would say the tide is turning now on the (Energy

Transfer ( ET )) legal issues. We're seeing the appellate ruling from

the Louisiana court that overturned the lower court ruling in

the DTM case," Dunn said.

"We certainly think that's going to be the same outcome that

we'll have on our cases ... ultimately, we're going to get our

pipeline project built," Dunn said.

In other pipeline news, Williams' CEO Alan Armstrong told

analysts the company planned to make an official U.S. Federal

Energy Regulatory Commission (FERC) filing later this year for

its proposed 1.6-bcfd Southeast Supply Enhancement gas pipeline

project to supply markets in the Mid-Atlantic and Southeast.

"These markets are experiencing increasing gas demand from

power generation and the reshoring of industrial loads,"

Armstrong said, noting utilities in the area have also announced

"dramatic increases in their (power) generation needs based on

data centers to be built in the region."

Armstrong said Williams would take advantage of supplies

coming in from the 2.0-bcfd Mountain Valley gas pipeline from

West Virginia to Virginia to meet some of that demand.

Equitrans Midstream ( ETRN ) said in April it expects its

long-delayed $7.85 billion Mountain Valley project to enter

service around May 31.

One billion cubic feet is enough gas to supply about 5

million U.S. homes for a day.

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