Four Major U.S. Energy companies have agreed to a joint venture towards building a 550-mile gas pipeline that will go through five West Virginia counties. Dominion Resources, Duke Energy, Piedmont Natural Gas and AGL Resources announced the formation of the pipeline which is expected cost around $5 billion and bring 1.5 billion cubic feet of natural gas per day to Virginia and North Carolina. A joint statement released by each entity stated, “It will create 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 future economic development across the region as businesses and homes rely more on natural gas,” the CEOs said. The pipeline will provide a new route for access to the growing Marcellus and Utica shale basins in West Virginia, Pennsylvania and Ohio. “The growing Marcellus Shale Industry is rapidly becoming an important factor in West Virginia’s economic future,” said House Speaker Tim Miley (D-Harrison). The joint venture ownership stakes are: Dominion, 45 percent; Duke Energy, 40 percent; Piedmont , 10 percent; and AGL Resources 5 percent.
The company plans to make a pre-filing request with the Federal Energy and Regulatory Commission (FERC) this fall on behalf of Atlantic Coast Pipeline. Its FERC application is expected to be filed in the summer of 2015, receive the FERC Certificate of Public Convenience and Necessity in the summer of 2016, and begin construction shortly after. The main pipeline will have a 42-inch diameter in West Virginia and Virginia and reducing to 36 inches in diameter in North Carolina. An extensive FERC review process will require input from federal, state and local entities and private citizens. Other areas that will be examined included geolgy, soils, wildlife and vegetation, Threatened and Endangered Species, historic resources, water and air quality and public safety.
Dominion operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves utility and retail energy customers in 10 states. Dominion has a portfolio of approximately 23,600 megawatts of generation, 10,900 miles of natural gas transmission, gathering and storage pipeline, and 6,400 miles of electric transmission lines.
Duke Energy is the largest electric power holding company in the United States with approximately $115 billion in total assets. Its regulated utility operations serve approximately 7.2 million electric customers located in six states in the Southeast and Midwest. Headquartered in Charlotte, N.C., Duke Energy is a Fortune 250 company traded on the New York Stock Exchange under the symbol DUK.
Piedmont Natural Gas:
Piedmont Natural Gas is an energy-services company primarily engaged in the distribution of natural gas to more than one million residential, commercial, industrial and power generation utility customers in portions of North Carolina, South Carolina and Tennessee, including customers served by municipalities who are wholesale customers. Piedmont subsidiaries are invested in joint venture, energy-related businesses, including unregulated retail natural gas marketing, and regulated interstate natural gas transportation and storage, and regulated intrastate natural gas transportation businesses.
AGL Resources is an Atlanta-based energy services holding company with operations in natural gas distribution, retail operations, wholesale services and midstream operations. AGL Resources serves approximately 4.5 million utility customers through its regulated distribution subsidiaries in seven states. The company also serves approximately 630,000 retail energy customers and approximately 1.2 million customer service contracts through its SouthStar Energy Services joint venture and Pivotal Home Solutions, which market natural gas and related home services.