Duke Energy and Piedmont to build gas pipeline in North Carolina

Duke Energy and Piedmont Natural Gas will jointly issue a solicitation for proposals to build and operate a second major wholesale natural gas pipeline into North Carolina to meet growing demand in the Carolinas and possibly in the surrounding states. Duke Energy's increasing reliance on natural gas to generate electricity, coupled with Piedmont's growing customer demand, warrant investment in a new pipeline that would bolster the reliability and diversity of natural gas supplies, the two companies state in their solicitation.

North Carolina is primarily served by a single major wholesale interstate natural gas pipeline that runs through the state. A new pipeline would expand Duke Energy's and Piedmont's ‘access to competitive, secure, diverse and abundant supplies,’ and ‘enhance the reliability of future natural gas deliveries into the state,’ the solicitation says. The two companies have a strong preference for a new pipeline route that provides geographical diversity relative to the path of North Carolina's existing major wholesale interstate pipeline. Additionally, the new pipeline should allow for ‘future low-cost expansions with minimal environmental impact.’

The past winter's extremely cold temperatures resulted in high natural gas demand throughout much of the nation, underscoring the need for additional natural gas pipeline capacity. In addition, the construction of numerous natural gas-fired power plants nationwide in the wake of coal-fired power plant closures – due to environmental regulations and low natural gas prices – has significantly increased demand for natural gas. Duke Energy has opened five new cleaner-burning natural gas-fired power plants in North Carolina since 2011 to replace older, less efficient coal-fired power plants. Piedmont pipelines supply natural gas to all five plants. Duke Energy has also proposed a new natural gas-fired power plant in South Carolina. Natural gas-fired power plants release far fewer air emissions than coal-fired power plants.

Since 2005, Duke Energy since has reduced company-wide carbon dioxide emissions by 20%, sulfur dioxide emissions by 84% and nitrogen oxide emissions by 63% by building natural gas-fired power plants, closing coal-fired power plants and installing additional emission control equipment. Meanwhile, Piedmont's residential, commercial and industrial customer demand for natural gas continues to grow. Piedmont also has become a major supplier of natural gas to power plants operated by Duke Energy and other electric utilities.

Duke Energy and Piedmont both view a new supply of natural gas as a powerful engine for statewide economic development and job growth, potentially helping North Carolina attract new, gas-dependent companies and industries. The new pipeline would generate a significant number of construction jobs during its building process, as well as new tax revenue for the communities through which it passes. Duke Energy and Piedmont will consider ‘a joint venture, ownership interest, strategic partnership or other financial-based arrangement’ in support of the selected proposal. Specifically, the two companies seek an initial natural gas pipeline capacity of as much as 900 million ft³/d, with a target in-service date of late 2018.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/07042014/duke_energy_and_piedmont_plan_to_build_a_second_gas_pipeline_in_north_carolina_196/