While it won’t get there for a while, gas is on its way toWarren County, NC. Frontier Energy, a subsidiary of Sempra Energy,this week is beginning construction of its planned Warren Countydistribution system and touted gas’ role in the area’s economicrevitalization. The Warren County pipeline is part of a $55 milliondistribution system being built by Frontier to serve residents andbusinesses in seven northwestern North Carolina counties.

Frontier, based in Elkin, NC, currently operates 120 miles oftransmission and distribution system in Surry, Yadkin and Wilkescounties. The system delivers gas to customers in the cities ofElkin, Mount Airy, Roaring River, Wilkesboro and Yadkinville.

Frontier’s transmission system in Warren County will begin atthe Virginia state line at the Transcontinental Pipeline tap westof U.S. Highway 1. The pipe will travel south along North CarolinaState Route 1210 to U.S. Highway 158, where it will branch to thewest toward the Soul City and Manson area and to the east toNorlina and then south to Warrenton.

This backbone pipeline of the gas system will consist of about20 miles of steel and polyethylene pipe. From the backbone system,distribution pipelines will be constructed to deliver gas toresidential, commercial and industrial customers.

Permitting procedures and rights-of-way acquisition are underway. The first part of the system constructed this fall will be themainline to U.S. Highway 158 and west toward the Soul City andManson area. The pipeline to Norlina and Warrenton will beconstructed in the first half of 2000.

“As more customers want to receive natural gas and newfacilities are constructed, we will expand our distribution systemto reach more parts of the county,” said Joseph Rivera, FrontierEnergy president. “Our pipeline will be at or near three I-85exits, and we hope that we can serve new hotels, restaurants, andother facilities that may locate near those exits in the future.”

“We believe this is the largest start-up local distributioncompany formed during the last 30 years in the United States,”Andrew Rea, Energy Pacific vice president of new business venturessaid in January 1998 when Energy Pacific and Frontier Utilitiesformed Frontier Energy to build the seven-county distributionsystem. “Our research indicates that customer acceptance of gaswill be high-it will be extremely competitive with the fuelscurrently being used.”

Frontier Energy is now owned by Sempra Energy Utility Ventures,which was spawned from Energy Pacific. Sempra Energy UtilityVentures also has a gas distribution project in Bangor, ME, thatwill serve 12 communities. Sempra is partnering with BangorHydro-Electric in Bangor Gas. Last year Bangor Gas installed 11miles of plastic distribution line in Brewer, Bangor and Veazie.The project also is focusing on Orono and Old Town.

Sempra Energy Utility Ventures also is hoping to build adistribution system in Nova Scotia. There the company is operatingas Sempra Atlantic Gas and is awaiting a decision from the NovaScotia Utility and Review Board as to whether it will be awardedthe project. The company’s competitor is Maritimes NRG. SempraAtlantic Gas is seeking to serve more than 75% of the households inthe province within seven years. Its system would consist of about4,145 miles of medium-pressure plastic main, about 870 miles ofhigh-pressure steel main, 11 tap stations and 150 pressure-limitingstations. The project is estimated to cost C$1.1 billion.

Joe Fisher, Houston

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