CHARLOTTE, N.C. — Duke Energy and Piedmont Natural Gas announced Tuesday that they have selected Virginia-based Dominion to build a massive natural gas pipeline from West Virginia to eastern North Carolina.
The 550-mile “Atlantic Coast Pipeline” project could cost as much as $5 billion. The expected in-service date for the pipeline will be in late 2018.
Multiple partners are involved in the big project and will share ownership of the 42-inch pipeline in West Virginia and Virgina and a 36-inch pipeline within North Carolina.
“Today, North Carolina is served primarily by only one major interstate natural gas pipeline that traverses the state’s western and central regions, transporting natural gas largely from the Gulf Coast region,” the companies said in a joint statement.
“To enhance reliability and energy security, Duke Energy’s and Piedmont’s solicitation sought proposals for a new, second natural gas pipeline that would transport additional large-scale supplies – from different sources – into the state.”
The pipeline is designed to help meet growing needs for natural gas in eastern North Carolina.
Federal Energy Regulatory Commission approval is required, and Dominion is expected to seek approval by 2016.
The pipeline will be owned by:
- Dominion – 45 percent
- Duke Energy – 40 percent
- Piedmont Natural Gas – 10 percent
- AGL Resources – 5 percent
Duke is increasing its reliance on natural gas to power its generator plants as it shifts away from coal. It now operates five natural gas-powered facilities in North Carolina. Another will open in South Carolina in 2017.
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:
“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.”