Scana Corp. dusted off its Carolina’s interstate gas pipelineproject yesterday and added a new twist to the concept. It hassigned an agreement with DFI Group Inc., a Raleigh, NC, developer,to evaluate the feasibility of constructing three proposed ethanolproduction facilities in eastern North Carolina that would beserved by the pipeline. The proposed system also might be used todeliver gas to several new gas-fired power plants and could serveas a conduit for fiber optic cable. The proposed projects wereannounced yesterday by North Carolina Governor James Hunt andScana.

Scana previously announced intentions to convert its 1,900-mileSouth Carolina Pipeline system to an interstate pipeline servingeastern North Carolina with a 160-mile extension from Grover, SC,to Pembroke, NC. Under the new proposal announced yesterday, Scanawould extend the system to the proposed ethanol facilities inOnslow, Greene and Martin counties, NC. In addition, the proposedpipeline extension would provide gas to power three proposed 200 MWelectric generation facilities that would be constructed on thesite of the ethanol plants. The generation plants, in which Scanamay participate and operate, would provide industrial grade steamto the ethanol plants and electricity. Excess electricity would besold to third parties.

Scana is also evaluating the feasibility of placing fiber opticlines with the pipeline that could be extended into eastern NorthCarolina.

“We are extremely excited about this project and expect thefeasibility studies regarding the pipeline, generation facilitiesand fiber optic communications to be completed in the next sixmonths,” said South Carolina Pipeline Corp. President Asbury H.Gibbes. “This enormous agribusiness project would not only providea tremendous economic development boost to eastern North Carolina,but would advance our plans to expand Scana’s gas transmissionnetwork into North Carolina to provide the state with a neededsecond source of natural gas.”

Gibbes said the proposed pipeline project currently calls forthe construction of 300 miles of high-pressure transmissionpipeline. The company is also reviewing proposals to provide gas toother industrial and municipal customers in the eastern NorthCarolina.

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