Duke Energy, Piedmont & Dominion to Build Atlantic Coast Pipeline

Duke Energy and Piedmont Natural Gas today announced the selection of 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 also is expected to 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 (DUK) 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 $4.5 billion and $5 billion, an initial capacity of 1.5 billion cubic feet 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
negotiating with other potential customers, as well.

Gas will be carried through a 42-inch-diameter pipe in West Virginia and Virginia, and a 36-inch-diameter pipe in North
Carolina.

Four regional owners
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 U.S.:

Dominion – 45 percent ownership.
Duke Energy – 40 percent ownership.
Piedmont Natural Gas – 10 percent ownership.
AGL Resources – 5 percent ownership.
In a joint statement, the four companies’ CEOs – Dominion’s Thomas Farrell, Duke Energy’s Lynn Good, Piedmont’s Thomas Skains and AGL Resources’ John Somerhalder – said the pipeline represents a major step forward for the region’s energy security, economic future and carbon reduction:

“The Atlantic Coast Pipeline is a transformational project for our region.  It will create thousands of construction jobs during development and significant new revenue for state and local governments throughout North Carolina, Virginia and West Virginia. The expanded source of gas will also help fuel economic development across the region as businesses and homes rely more on natural gas.”

Natural gas is increasingly important for advanced electricity generation, contributing to significantly lower greenhouse gas and other emissions.  The project will also provide more reliable access to new sources of natural gas, keeping consumers’ energy costs down – even during the coldest and hottest weather.”

Piedmont plans to make additional utility investment
In conjunction with its investment in the Atlantic Coast Pipeline, Piedmont Natural Gas plans to make additional utility capital investments in its natural gas delivery system of approximately $190 million in order to redeliver Atlantic Coast Pipeline gas supplies to local North Carolina markets the company serves.