$497 Million Pipeline Proposal Would Link
U.S., Canadian Gas Supply to Mid-Atlantic/Southeast
"Critical new energy infrastructure"
would be created by 280-mile facility formally proposed by Dominion, Piedmont
Natural Gas in FERC application
RICHMOND, Va. - A Dominion (NYSE: D) and Piedmont Natural
Gas (NYSE: PNY) partnership has applied to build a $497 million natural gas
pipeline that will create critical new links between the Mid-Atlantic/Southeast
regions and major gas supplies in Canada, Appalachia and Mid-Continent regions.
New links would also be created with the Gulf of Mexico and Gulf coast regions.
As outlined in an application filed with the Federal Energy
Regulatory Commission (FERC), the 280-mile Greenbrier Pipeline would originate
in Kanawha County, W.Va., and extend southeast to Granville County, N.C. The
planned route has been mapped by the partnership during nearly two years of
meetings with local governments, landowners, customers and other stakeholders.
The pipeline is expected to enter service in mid-2005 with
capacity to move more than 580 million cubic feet of natural gas per day. The
partners, operating as Greenbrier Pipeline Company, LLC, said the pipeline will
generate substantial new economic growth opportunities. It will open new expansion
opportunities for local distribution companies, new power supply projects, energy
marketing companies, and industrial customers seeking a broader range of competitive
gas suppliers.
In fact, Greenbrier Pipeline already has long-term, firm
transportation contracts for the project's initial capacity, including agreements
with two new gas-fired power stations and North Carolina's two largest local
distribution companies. A portion of the pipeline's capacity will be held by
Greenbrier Marketing Company, LLC, a recently formed affiliate with the sole
purpose of marketing any remaining uncommitted volumes.
Dominion owns 67 percent of the pipeline partnership, Piedmont
Natural Gas 33 percent. The pipeline will be designed, constructed and operated
by Dominion Transmission Inc. Through its connection to Dominion Transmission,
Greenbrier Pipeline will also create connections to the Tennessee and Columbia
interstate pipelines.
"The Greenbrier Pipeline will put in place critical
new energy infrastructure," said Ware F. Schiefer, Piedmont's chief executive
officer. "It will promote long-term economic growth in the Southeast by
increasing supply and supply options for gas using customers of all variety.
In some cases, we'll even be able to reach areas where natural gas is not now
available."
Thos. E. Capps, Dominion's chairman, president and chief
executive officer, said: "Natural gas is the fuel of the future and the
efficient production and delivery of this vital resource will be important to
our nation's well being over the coming decade. That's why a large number of
good people have worked extraordinarily hard to get the details of this project
in place before we actually seek our certificate to build."
Capps said that FERC filing procedures have helped the partnership
create a pathway that is feasible and realistic.
"Through the FERC's innovative pre-filing process,
we have worked closely with all those affected by the pipeline's route,"
he said. "We have made many good adjustments in advance of the formal application
filing. This will reduce areas of potential concern - including environmental,
cultural and residential interests of local communities along the pipeline right-of-way.
We believe the filed route minimizes the landowner and environmental impacts
of the pipeline. However, we will continue to work with landowners and other
affected parties."
The certificate application includes the proposed route through
West Virginia, Virginia and North Carolina, and two new compressor stations
- the Elk River Station in Kanawha County, West Virginia, and the Eden Station
in Rockingham County, North Carolina. Detailed route maps can be viewed on Dominion's
Web site (www.dom.com, keyword Greenbrier).
Greenbrier voluntarily conducted 18 informational meetings
at various locations along the proposed route and considered comments and suggestions
from local residents, landowners, businesses, environmental groups, economic
development groups and government officials before submitting its route. About
a third of the route follows existing right-of-ways.
The selection of the Greenbrier pipeline route is based on
a number of factors, including land use, location of populated areas, surface
topography, geological considerations, and environmental factors. Greenbrier
has conducted biological, archaeological and engineering surveys of its entire
route.
The FERC's environmental staff also has been reviewing the
Greenbrier project since November 2001 through the pre-filing process - by conducting
site visits, attending public and agency meetings, and meeting with landowner
groups.
Dominion is one of the nation's largest producers of energy,
with a production capability of more than 3 trillion British thermal unit of
energy per day. Dominion has a diversified and integrated energy portfolio consisting
of nearly 24,000 megawatts of generation, 5.1 trillion cubic feet equivalent
of proved natural gas reserves, 7,600 miles of natural gas transmission pipeline
and the nation's largest underground natural gas storage system with more than
950 billion cubic feet of storage capacity. Dominion also serves 3.9 million
franchise natural gas and electric customers in five states. For more information
about Dominion, visit the company's web site at www.dom.com.
Piedmont Natural Gas is an energy and services company
primarily engaged in the distribution of natural gas to 710,000 residential,
commercial and industrial customers in North Carolina, South Carolina and Tennessee.
The Charlotte-based company is the second-largest natural gas utility in the
Southeast. Piedmont is also invested in a number of non-utility, energy-related
businesses including companies involved in unregulated retail natural gas and
propane marketing, and interstate and intrastate natural gas storage and transportation.
More information about Piedmont Natural Gas is available on the Internet at
www.piedmontng.com.
