Transco’s 1.6 Bcf/d Southeast Supply Enhancement Project Status Update
Transcontinental Gas Pipeline’s 1.6 Bcf/d Southeast Supply Enhancement project gained unanimous FERC approval on January 29. This kept the project on schedule, as they seek to provide partial service in the 2026-2027 winter season, with the project expected to be fully operational by Q3 2027. Once in service, the project will unlock incremental supply from the Northeast, allowing producers to grow output and expand access to markets in the Southeast and South Central. While generally, increases in pipe capacity can support basis prices, it is likely that Appalachian producers will expand production and fill any new capacity relatively quickly.
Source: S&P Global, Williams
The project includes a total of about 55 miles of pipeline looping in Virginia and North Carolina to the existing Transco corridors located in Rockingham, Guildford, Forsyth and Davidson Counties. The project will provide firm-transportation capacity from Transco’s Compressor Station 165 south to downstream delivery points, improving access for Appalachian production while relieving constraints at Station 165.
It also looks to add compressor units in Cleveland, Iredell, and Davidson counties (stations 145, 150, and 155), as well as station reversals in Anderson County, Walton County, Henry County, and Coosa County. These modifications will allow for Bi-Directional compression, with the purpose of allowing for future flexibility in flow direction on the pipe. The project’s final regulatory stepping stone to clear was the Army Corps’ Clean Water Act Section 404 permit, which it achieved on February 19, 2026 for the full length of the added pipe.
This project is one of several planned for the next few years which will increase pipeline capacity from the Northeast to the Southeast and Midwest regions, enabling continued Appalachian production growth.