A week after expressing doubts about the existing market support for the project, FERC on Wednesday awarded a certificate for the construction of the $497 million Greenbrier Pipeline to serve industrial and residential gas needs in the Mid-Atlantic and Southeast regions, primarily Virginia and North Carolina.

The Commission issued the certificate only after Dominion Transmission Inc., the majority partner in the project, assured the agency last week that approximately 90% of the transportation capacity to be created by the proposed natural gas pipeline was under contract to power generators and local distribution companies (LDCs).

Because Greenbrier Pipeline took advantage of the pre-filing process under the National Environmental Protection Act (NEPA), FERC staff estimated that as much as seven months were shaved off the typical 16-18 month certificate process. FERC Chairman Pat Wood called the seven months a “conservative” figure, given that many pipeline project applications are contested and tend to drag out.

The proposed 279-mile pipeline would deliver gas to at least three gas-fired power generation facilities, two LDCs and one marketer in the Mid-Atlantic and Southeast. The delivery capability of the line was estimated at 600,000 Dth/d, of which 540,000 Dth/d was under precedent agreements, according to Dominion Transmission [CP02-396].

The pipeline would originate in Kanawha County, WV, with interconnections to Dominion Transmission and Tennessee Gas Pipeline, and extend through southwestern Virginia into Granville County, NC. Dominion Transmission has a 67% ownership stake in the project, while Piedmont Natural Gas has a 33% interest. Piedmont serves 700,000 LDC customers in North Carolina.

FERC staff noted the project would offer greater supply diversity and competition in the region. Supplies delivered from Dominion Transmission and Tennessee into the Greenbrier system near Charleston, WV, would come from the Appalachian, Canadian, Gulf Coast and Mid-Continent regions or storage facilities operated by Dominion.

©Copyright 2003 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.