Atlantic Coast Pipeline, LLC, which has proposed a 600-mile natural gas transmission pipeline to bring much-needed energy to Virginia and North Carolina, today announced it has signed a construction contract with Spring Ridge Constructors, LLC (SRC), a joint venture of leading natural gas pipeline construction companies. Comprised of Price Gregory International, Inc., a Quanta Services, Inc. (NYSE: PWR) company; U.S. Pipeline, Inc.; SMPC, LLC; and Rockford Corporation, a Primoris Services Corporation (NASDAQ: PRIM) company, the joint venture will serve as the Atlantic Coast Pipeline's lead construction contractor.
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Pending approval by the Federal Energy Regulatory Commission (FERC), the Atlantic Coast Pipeline (ACP) would run from Harrison County, W.Va., southeast through Virginia with a lateral extension to Chesapeake, Va., and then south through eastern North Carolina to Robeson County. If approved, construction is scheduled to begin in the fall of 2017. According to economic impact studies conducted in 2015, the project's construction is expected to generate more than 17,000 jobs, $2.7 billion in total economic activity and $4.2 million in average annual tax revenue for cities and counties in the project area.
SRC was selected as the most-qualified contractor for the project after an extensive, competitive bidding process conducted by Atlantic Coast Pipeline, LLC. The four SRC companies account for a significant portion of the large-diameter natural gas pipeline construction spread capacity in the U.S.
"We are excited to work with SRC, which has assembled four of the nation's leading and most-qualified pipeline builders for this project," said Diane Leopold, president of Dominion Energy. "These companies have extensive experience in building large-scale, complex projects like the Atlantic Coast Pipeline, and their commitment to safe construction practices and best-in-class standards align with our expectations for the project."
"The selection of our lead construction contractor is another significant milestone for the Atlantic Coast Pipeline and represents one more step toward making this project a reality and securing the energy future of our region," Leopold added.
"SRC is pleased to have been selected by ACP as the constructor of this vital project which serves to strengthen the nation's energy infrastructure," said Dan Plume, SRC project director. "The members of SRC are aligned in purpose with the common goals of safe construction practices, a commitment to environmental stewardship and quality construction. The SRC team leads the industry with a combined 200 years of expertise and leadership in the construction of large diameter pipelines that encompass all regions and terrains across North America. We are also excited about the positive economic impact this project will have in communities across these three states, where SRC and its subcontractors expect to hire thousands of local workers and enlist the services of many local businesses."
In another significant milestone for the project, in early August FERC issued a Notice of Schedule, which established the timeline for the remainder of the project's federal environmental review process. Based on FERC's schedule, ACP expects to receive a FERC certificate in the late summer or fall of 2017, with construction beginning shortly thereafter. ACP anticipates completing construction and bringing the pipeline into service in late 2019. ACP is working with its contractors to evaluate the possibility of bringing on more crews and working on more simultaneous spreads in order to complete construction sooner. This analysis is expected to be finalized over the next few months.
Atlantic Coast Pipeline, LLC is composed of four major U.S. energy companies – Dominion, Duke Energy, Piedmont Natural Gas and Southern Company Gas. The joint venture partners plan to build and own the $4.5 billion-to-$5 billion pipeline, which would help meet the growing clean energy needs of Virginia and North Carolina by providing direct access to low-cost, abundant supplies of natural gas being produced in the nearby Marcellus and Utica shale basins of West Virginia, Pennsylvania and Ohio.