Duke Makes Gains on Natural Gas-fired Projects, Atlantic Coast Pipeline

Researched by Industrial Info Resources (Sugar Land, Texas)--Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina) reported lower second-quarter net income of $500 million, compared with $686 million in second-quarter 2017. The company continues to make strides toward a buildout of natural gas-fired power in Florida and North Carolina, as well as the Atlantic Coast Pipeline between West Virginia and North Carolina. Including the joint venture pipeline, Industrial Info is tracking more than $7.7 billion in Duke projects.

In the company's conference call regarding the quarter, Duke Chief Executive Officer Lynn Good gave updates on some of the company's growth projects. Among Duke's largest power projects is the Citrus County natural gas-fired power station near Crystal River, Florida. Construction on the plant began late 2015, with Fluor Corporation (NYSE:FLR) (Irving, Texas) acting as turnkey contractor. Good said, "Construction continues on our 1,600-megawatt (MW) Citrus County combined-cycle plant in Florida. We have begun commissioning activities, and yesterday [August 1, 2018], we achieved first-fire on Power Block 1, a significant milestone for the project. We are on track to place Unit 1 in service this fall, with Unit 2 following by the end of the year." For more information, see Industrial Info's project report.

Lynn continued: "Our Western Carolinas Modernization Project is progressing well." The $600 million project involves constructing a 560-MW combined-cycle unit at the existing Asheville Power Station in Arden, North Carolina. "It remains on track for the expected 2019 in-service date," said Good. McDermott International Incorporated (NYSE:MDR) (Houston, Texas) is the engineering, procurement and construction contractor on the project, which began in late 2017. For more information, see Industrial Info's project report.

Duke also is building out other natural gas-fired projects in North Carolina. Among these is the 400-MW combustion turbine addition at the company's facility in Stanley, North Carolina. Construction on the Siemens simple-cycle turbine is expected to kick in the fourth quarter of this year and be completed in the first half of 2020. The project has an estimated total investment value of $320 million. For more information, see Industrial Info's project report.

Duke's projects are not all in the Southeast. Good said, "In Commercial Renewables, our 25-MW Shoreham facility on Long Island, New York, achieved commercial operation in the third quarter. The $55 million project kicked off in the first half of 2017, with Eldor Contracting Corporation (Holtsville, New York) acting as the general contractor. Invenergy LLC (Chicago, Illinois) performed design engineering. For more information, see Industrial Info's project report.

Lynn also spoke of the company's Atlantic Coast Pipeline, joint venture with Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia), that would carry natural gas approximately 600 miles from West Virginia to North Carolina. Lynn said, "We're making significant progress on the Atlantic Coast Pipeline. In May, we received FERC (Federal Energy Regulatory Commission) approval to start full construction on the West Virginia portion of the pipeline. We made a similar request for North Carolina and received approval in July. Construction also continues in West Virginia and North Carolina on two of the three compressor stations and other facilities required for the project. We expect the final state permit in Virginia in the coming weeks and are targeting a fourth-quarter 2019 in-service date for the project." For more information, see Industrial Info's project reports on the West Virginia, Virginia and North Carolina portions of the project and August 1, 2018, article - Dominion Progresses on Pipeline, Transmission Projects in Second Quarter.

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