Atlantic Coast Pipeline applies for FERC permission to build

Atlantic Coast Pipeline LLC applied to the US Federal Energy Regulatory Commission for permission to build its 564-mile interstate natural gas transmission pipeline. The pipeline—owned by Dominion 45%, Duke Energy 40%, Piedmont Natural Gas 10%, and AGL Resources 5%—will transport as much as 1.5 bcfd southeast from Harrison County, W.Va., to Chesapeake, Va., and Robeson County, NC.

Dominion expects construction to begin in second-half 2016, pending regulatory approvals, for a fourth-quarter 2018 in-service date. The company estimates Atlantic Coast Pipeline will cost $5 billion.

Utility subsidiaries and affiliates of all four companies plus PSNC Energy have signed on as customers of the pipeline, subscribing 96% of the pipeline’s capacity. Dominion and Duke Energy, for example, are building multiple natural gas-fired power stations and closing coal-fired ones. Virginia Natural Gas, AGL’s subsidiary in Hampton Roads, Va., said it needs more natural gas to meet peak customer demand in Chesapeake and Virginia Beach.

Dominion has completed surveying about 85% of a proposed route. Atlantic will file supplemental information with FERC when surveying is completed and propose the final route. The comment period for alternative routes ended Sept. 4 (OGJ Online, Aug. 6, 2015).

Dominion Transmission Inc. applied simultaneously to FERC for permission to build its Supply Header Project, including 38 miles of gas pipeline and modified existing compressor stations in West Virginia and Pennsylvania. The company expects the project to cost $500 million.

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