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Dominion Nixes Pipe Project Planned for Mid Atlantic, Northeast

Dominion Transmission, the pipeline subsidiary of Dominion Resources Inc., said it has cancelled plans to build the $497 million Greenbrier Pipeline that would have served the industrial and residential gas needs in the Mid-Atlantic and Southeast regions, primarily Virginia and North Carolina.

"The market just didn't materialize that we had anticipated and hoped for," said Bob Fulton, a spokesman for Dominion Transmission. The company last week asked the Federal Energy Regulatory Commission to withdraw its April 2003 certificate approving the Greenbrier project. "At this time" Dominion Transmission has no plans to build the pipeline at a later date, he noted.

Fulton said the capital that had been earmarked for Greenbrier has been transferred to the expansion of Dominion Cove Point LP's liquefied natural gas (LNG) plant in Maryland.

The Commission was hesitant about the project from the very start. It issued a certificate only after Dominion Transmission, the majority partner in the project, assured the agency that approximately 90% of the transportation capacity that would have been created by the proposed gas pipeline was under contract to power generators and local distribution companies (LDCs).

The proposed 279-mile pipeline would have been capable of delivering 600,000 Dth/d, of which Dominion Transmission said 540,000 Dth/d was under precedent agreements at the time the certificate was issued [CP02-396].

The pipeline was to have originated in Kanawha County, WV, with interconnections to Dominion Transmission and Tennessee Gas Pipeline, and extend through southwestern Virginia into Granville County, NC.

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