Dominion asks federal permission for two natural-gas projects

Published June 3, 2014 by Robert Powell, III

Richmond-based Dominion Resources has asked federal regulators for approval of natural-gas projects in West Virginia and upstate New York costing a total of $235 million.

The company said the Clarington project in West Virginia would provide a reliable route to transport natural gas from Appalachian basin.

The New Market project in upstate New York, Dominion said, would improves access for the energy company National Grid to meet growing demand for natural gas.

“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,” Diane Leopold, president of Dominion Energy, said in a statement. “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.”

The company has filed applications for Certificates of Public Convenience and Necessity with the Federal Energy Regulatory Commission, the federal agency responsible for reviewing and authorizing interstate natural gas transmission projects.

The Clarington project would provide 250,000 dekatherms 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 in service by November 2016.

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.