TPi January 2015

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January 2015 Tube Products International 23
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 ft3 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
Duke Energy – USA
Piedmont Natural Gas – USA
AGL Resources – USA