TPi January 2015

business & market news

550-mile ‘Atlantic Coast Pipeline’ Duke Energy and Piedmont Natural Gas have selected Dominion to build and operate a 550-mile interstate natural gas pipeline from West Virginia, through Virginia and into eastern North Carolina, to meet the region’s rapidly growing demand for natural gas. Called the Atlantic Coast Pipeline, it is expected to also serve as a key infrastructure engine to drive economic development and create jobs, helping counties on the pipeline’s route attract new, energy-dependent businesses and industries, especially along the Interstate 95 corridor in eastern North Carolina. Duke Energy and Piedmont selected Dominion’s project after reviewing submittals by five companies in response to an April 2014 solicitation for proposals to build North Carolina’s second major interstate natural gas pipeline. The pipeline has an estimated cost of between $4.5bn and $5bn, an initial capacity of 1.5bn ft 3 of natural gas per day, and a target in-service date of late 2018. The project will require Federal Energy Regulatory Commission approval, which Dominion will seek to secure by summer 2016. The pipeline’s main customers are six utilities and related companies that collectively will purchase a substantial majority of the pipeline’s capacity to transport natural gas: Duke Energy Carolinas, Duke Energy Progress, Virginia Power Services Energy, Piedmont Natural Gas, Virginia Natural Gas and PSNC Energy. The purchases will be made through 20-year contracts, subject to state regulatory approval. The pipeline’s owners are also negotiating with other potential customers. Gas will be carried through a 42" diameter pipe in West Virginia and Virginia, and a 36" diameter pipe in North Carolina. In addition to its role as builder and operator, Dominion will be one of the pipeline’s four owners – all based in the mid-Atlantic or southeast USA: Dominion (45 per cent ownership); Duke Energy (40 per cent); Piedmont Natural Gas (10 per cent); and AGL Resources (5 per cent). In a joint statement, the four companies’ CEOs said the pipeline represents a major step forward for the region’s energy security, economic future and carbon reduction. Dominion will build and operate the pipeline through a services agreement with its Dominion Transmission subsidiary, which will oversee siting, permitting, engineering and legal issues.

Dominion Resources – USA www.dom.com

Duke Energy – USA www.duke-energy.com

Piedmont Natural Gas – USA www.piedmontng.com

AGL Resources – USA www.aglresources.com

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January 2015 Tube Products International