Dominion Energy Inc. said this week it agreed to buy Southern Co.'s stake in the roughly $8 billion Atlantic Coast natural gas pipeline from West Virginia to North Carolina, which is expected to enter service in early 2022.
If approved, that will bring Dominion's share in the pipeline to 53%, up from 48%. Duke Energy Corp. will own the remaining 47%. Southern will remain an anchor customer of the pipe through its Virginia Natural Gas subsidiary.
In addition, Dominion said it agreed to buy Southern's Pivotal LNG, which distributes LNG for marine and road transportation. The total cost of the Atlantic Coast stake and Pivotal was about $175 million, Dominion said.
Atlantic Coast, the nation's most expensive gas pipe, is one of several projects that have received federal permits in recent years but have been delayed by state opposition and local and environmental legal and regulatory battles.
Some analysts have questioned whether Dominion will be able to complete Atlantic Coast following numerous delays and cost increases related to regulatory and legal battles over state and federal permits.
Dominion CFO James Chapman told analysts on Feb. 11: "Major project customers have confirmed their willingness to take on higher project rates given the strategic importance of [Atlantic Coast] as an alternative pipeline option to the region."
Dominion CEO Thomas Farrell told analysts the company could restart pipeline construction after receiving some key permits that are expected during the first half of this year. The U.S. Supreme Court is expected to rule in May or June in a case about whether the pipeline can run underneath the Appalachian Trail in Virginia.
Recommended Reading
Defeating the ‘Four Horseman’ of Flow Assurance
2024-04-18 - Service companies combine processes and techniques to mitigate the impact of paraffin, asphaltenes, hydrates and scale on production — and keep the cash flowing.
Tech Trends: AI Increasing Data Center Demand for Energy
2024-04-16 - In this month’s Tech Trends, new technologies equipped with artificial intelligence take the forefront, as they assist with safety and seismic fault detection. Also, independent contractor Stena Drilling begins upgrades for their Evolution drillship.
AVEVA: Immersive Tech, Augmented Reality and What’s New in the Cloud
2024-04-15 - Rob McGreevy, AVEVA’s chief product officer, talks about technology advancements that give employees on the job training without any of the risks.
Lift-off: How AI is Boosting Field and Employee Productivity
2024-04-12 - From data extraction to well optimization, the oil and gas industry embraces AI.
AI Poised to Break Out of its Oilfield Niche
2024-04-11 - At the AI in Oil & Gas Conference in Houston, experts talked up the benefits artificial intelligence can provide to the downstream, midstream and upstream sectors, while assuring the audience humans will still run the show.