By Erin McCarthy
Four major U.S. energy companies disclosed plans Tuesday to form
a joint venture to build the proposed Atlantic Coast Pipeline,
which would funnel natural gas from West Virginia to North
Carolina.
The companies forming the joint venture--Dominion Resources
Inc., Duke Energy Corp., Piedmont Natural Gas Co. and AGL Resources
Inc.--said the partnership, called Atlantic Coast Pipeline LLC,
will own the pipeline, which was initially proposed by Dominion as
the Southeast Reliability Project.
The $4.5 billion to $5 billion, 550-mile natural gas pipeline
would deliver natural gas supplies to markets in Virginia and North
Carolina, the companies said. The pipeline is expected to be in
service by late 2018.
Dominion would build and operate the Atlantic Coast Pipeline on
behalf of the venture, and would own a 45% stake. Duke Energy would
hold 40%, while Piedmont would have a 10% stake and AGL Resources
would own 5%. Subsidiaries and affiliates of all four joint venture
partners plan to be customers of the pipeline under 20-year
contracts, while PSNC Energy also plans to be a customer of the
pipeline under a 20-year contract.
Dominion has started to survey the area to determine the best
route. The project will require Federal Energy Regulatory
Commission approval, which Dominion will seek to secure by summer
2016, after which it would begin construction.
The pipeline would run from Harrison County, W. Va., southeast
through Virginia with an extension to Chesapeake, Va., and then
south through central North Carolina to Robeson County. It would
also provide a new route for direct access to growing production in
the Marcellus and Utica shale basins of West Virginia, Pennsylvania
and Ohio, they added.
Write to Erin McCarthy at erin.mccarthy@wsj.com
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