Source: Piedmont Natural Gas
Piedmont Natural Gas (PNY) announced an agreement with Progress Energy Carolinas (PGN) to provide natural gas delivery service to the electric utility's recently announced power generation facility to be built at its existing Sutton site near Wilmington, N.C. Piedmont will construct approximately 133 miles of transmission pipeline and install 23,000 HP of new compression facilities to serve the new 620 MW combined cycle Sutton plant.
Commenting on the announcement, North Carolina Governor Beverly Perdue said, "We welcome today's announcement which represents not only a significant investment by Piedmont Natural Gas and Progress Energy Carolinas in critical energy infrastructure for our State but also advances our joint efforts to create a cleaner environment for the benefit of all North Carolinians."
Piedmont's capital investment in the pipeline and compression facilities is estimated at $217 million. The new natural gas facilities will not only serve Progress Energy Carolinas' requirements at its new Sutton plant but will also create cost effective expansion capacity that Piedmont will use to help serve the growing natural gas requirements of its other customers in the eastern part of North Carolina. Progress Energy Carolinas' subscription to the natural gas expansion capacity is supported by a long-term service agreement with Piedmont. Subject to approval by the North Carolina Utilities Commission, Piedmont will begin construction of the new natural gas pipeline and compression facilities early in 2011 and be ready for service in June 2013.
Piedmont Natural Gas Chairman, President and CEO Thomas E. Skains commented on the agreement, "We are excited about this additional opportunity to work with Progress Energy to add significant new natural gas infrastructure to deliver clean and efficient energy to the eastern portion of North Carolina. This project will stimulate economic growth and development and benefit our environment and the energy consumers in North Carolina."
"This is an important milestone for North Carolina and a vital part of our plan to convert a significant portion of our power plant capacity from coal to natural gas," said Lloyd Yates, CEO and president of Progress Energy Carolinas. "We are pleased to be the catalyst for this critical natural gas expansion and the economic and environmental benefits it will bring to eastern North Carolina."