Gas will be carried through a 42 inch diameter pipe in West Virginia and Virginia, and a 36-inch-diameter pipe in North Carolina. The pipeline has an estimated cost of between $US4.5-5 billion, an initial capacity of 1.5 Bcf/d of natural gas, and a target in-service date of late 2018.
Dominion was selected to build and operate the project after Duke and Piedmont reviewed submittals by five companies.
The project will require Federal Energy Regulatory Commission approval, which Dominion will seek to secure by summer 2016.
Once completed, Dominion will be one of the pipeline’s four owners with 45 per cent ownership, along with Duke Energy at 40 per cent, Piedmont Natural Gas at 10 per cent, and AGL Resource with 5 per cent.
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.