Dominion Resources, US Partners Sign $5B Pipeline Deal

Hess To Form MLP For North Dakota Oil, Gas Transport Assets
Dominion Resources enters a joint venture with three other US energy companies for a $4.5-$5 billion pipeline that will ship natural gas to North Carolina and Virginia.

Reuters

Sept 2 (Reuters) - Dominion Resources Inc entered into a joint venture with three other U.S. energy companies for a $4.5-$5 billion pipeline that will ship natural gas to North Carolina and Virginia.

The proposed 550-mile pipeline, to be built by Dominion, will also be owned by Duke Energy Corp, Piedmont Natural Gas Co and AGL Resources Inc under the partnership Atlantic Coast Pipeline LLC.

Dominion, which operates 8,000 miles of interstate pipeline in six U.S. states, will operate the pipeline that is expected to transfer 1.5 billion cubic feet of natural gas per day, the companies said in a statement.

The pipeline will help move rising production from the Marcellus and Utica shale basins in West Virginia, Pennsylvania and Ohio to growing markets in Virginia and North Carolina.

Dominion is determining the best route for the pipeline and will seek to secure approval from the Federal Energy Regulatory Commission by the summer of 2016. The company said it expects to begin construction shortly thereafter.

Dominion will own 45 percent of the pipeline, while Duke Energy will hold a 40 percent. Piedmont Natural will own a 10 percent and AGL Resources a 5 percent.

(Reporting By Shubhankar Chakravorty in Bangalore; Editing by Maju Samuel)

Copyright 2017 Thomson Reuters. Click for Restrictions.

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE



Most Popular Articles

From the Career Center
Jobs that may interest you
Land Equipment Operator
Expertise: Heavy Machinery Operator
Location: Houston, TX
 
Top Drive Technician - Houston
Expertise: Field Service Tech|Hydraulic & Pneumatic|Mechanical Technician
Location: Houston, TX
 
Diesel Equipment Service Technician
Expertise: Mechanical Technician
Location: Prairieville, LA
 
search for more jobs

Brent Crude Oil : $50.97/BBL 1.53%
Light Crude Oil : $48.75/BBL 1.79%
Natural Gas : $2.92/MMBtu 0.68%
Updated in last 24 hours