Duke Energy, Piedmont Natural Select Dominion To Build 'Atlantic Coast Pipeline'

(RTTNews) - Duke Energy (DUK) and Piedmont Natural Gas (PNY) 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, Piedmont said.

Piedmont noted that 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.