Piedmont Natural Gas will also install new compression facilities to serve the new 620 MW combined-cycle Sutton plant.
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 $US217 million.
Piedmont will also use the new facilities 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 the facilities are scheduled to be put in service in June 2013.