June 3, 2014
Dominion (NYSE: D) asked the Federal Energy Regulatory Commission (FERC) to approve two projects that would provide additional natural gas supplies from the ever-growing production in the Appalachian Region.
The New Market project in upstate New York improves access for National Grid to meet its customers' growing demand for natural gas, while the Clarington project in West Virginia provides a secure and reliable route to transport growing gas supplies out of the Appalachian basin to market.
Dominion filed applications for Certificates of Public Convenience and Necessity with the FERC, the federal agency responsible for reviewing and authorizing interstate natural gas transmission projects. The approximate costs of these two projects are $235 million.
"We are pleased that we can support our customers' growing needs. Natural gas produced from the Marcellus and Utica shales in the Appalachian region of West Virginia and Ohio is expected to continue its strong and rapid growth," said Diane Leopold, president of Dominion Energy. "Our interstate pipeline system is uniquely positioned to transport Appalachian production as our pipelines traverse the area of significant supply growth. Additional firm transportation capacity for new natural gas supplies for both projects also will alleviate the possibility of shortages by providing more gas to market."
New Market Project
The New Market project would provide 112,000 dekatherms (Dth) per day of firm transportation service. Just more than 33,000 horsepower of compression would be added in upstate New York to Dominion Transmission's existing system. The project will improve access to natural gas to serve two National Grid subsidiaries, Niagara Mohawk and Brooklyn Union. If approved and the FERC issues the certificate in April 2015, construction would begin in late summer 2015 and the project would be placed into service by November 2016.
The project includes:
- Two new compressor stations of approximately 11,000 horsepower each in Madison County, N.Y., and Chemung County, N.Y.
- Approximately 11,000 of additional horsepower of compression at Dominion's current Brookmans Corners Station in Montgomery County, N.Y.
- Upgrades at the existing Borger, Utica and Brookmans Corners stations Clarington Project
The Clarington project would provide 250,000 dekatherms (Dth) per day of firm transportation service. It would add approximately 16,000 horsepower of compression at existing stations in West Virginia and Ohio, and provide incremental firm transportation services and increased access for production in the Appalachian Region to market. If approved and the FERC issues the certificate in May 2015, construction would begin in October 2015 and the project would be placed into service by November 2016.
The project includes:
- The addition of two compressors totaling 10,000 horsepower at the existing Mullett Compressor Station in Monroe County, Ohio.
- Additional 6,000 horsepower of compression at existing Burch Ridge Compressor Station in Marshall County, W.Va.
- A new interconnection with CNX Gas Company near Lightburn, W.Va., to receive Appalachian gas and deliver it to Texas Eastern Transmission and Rockies Express Pipeline in Monroe County, Ohio.
Dominion is one of the nation's largest producers and transporters of energy, with a portfolio of approximately 23,600 megawatts of generation, 10,900 miles of natural gas transmission, gathering and storage pipeline and 6,400 miles of electric transmission lines. Dominion operates one of the nation's largest natural gas storage systems with 947 billion cubic feet of storage capacity and serves utility and retail energy customers in 10 states.
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