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Researched by Industrial Info Resources (Sugar Land, Texas)--Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) faced a mixed bag regarding its projects in 2018. While the company put two major projects into operation, it continues to face delays on its current major project, the Atlantic Coast Pipeline.
In the company's fourth-quarter earnings conference call, Dominion Chief Financial Officer Jim Chapman said, "We placed both the Cove Point liquefaction project and Greensville Power Station into commercial service, collectively representing over $5 billion of invested capital."
The Cove Point liquefied natural gas (LNG) terminal was the second LNG production and export terminal to come online in the U.S., after Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Sabine Pass terminal in Louisiana. The project liquefies 1 billion cubic feet per day (Bcf/d) of natural gas to produce 5.25 million tons per year of LNG. For more information, see Industrial Info's project report.
The company's other major project to wrap up in 2018, the Greensville Power Station in Virginia, was completed late in the fourth quarter. Construction on the $1.3 billion project began in 2015, with Fluor Corporation (NYSE:FLR) (Irving, Texas) providing engineering, procurement and construction (EPC). The combined-cycle plant has a generating capacity of 1,588 megawatts (MW). For more information, see Industrial Info's project report.
The company's next major project, the Atlantic Coast natural gas pipeline, has faced a slew of regulatory setbacks, resulting in increased pricing and project delays. Led by Dominion, the project is joint venture with Duke Energy Corporation (NYSE:DUK) and AGL Resources (Atlanta, Georgia), a unit of Southern Company (NYSE:SO) (Atlanta). The pipeline will carry 1.5 Bcf/d and run about 600 miles from West Virginia to eastern North Carolina.
In December, the project faced two challenges from a U.S. appeals court. In the first, the court stayed a permit from the U.S. Fish and Wildlife Service, which authorized the pipeline to built in areas where there are threatened or endangered species. In the second, permits from the U.S. Forest Service were stayed by the court, which claimed the agency "abdicated its responsibility to preserve national forest resources" when it issued the permits. This decision was made by a panel of three judges, but was recently frozen as the court decides whether it will hear in front of all judges on the court. Dominion was forced to stop construction on most of the pipeline in December. For more information, see Industrial Info's project reports on the West Virginia, Virginia and North Carolina sections of the pipeline.
Despite the setbacks, the company remains optimistic about the future of Atlantic Coast, although even in the best cases scenario, delays are expected. In the company's conference call, Chief Executive Officer Tom Farrell said, "As for the Atlantic Coast Pipeline and supply header projects, we remain highly confident in the successful and timely resolution of all outstanding permit issues, as well as the ultimate completion of the entire project... Our current expectation is that full construction could restart in the third quarter." If this is the case, sections of the pipeline could enter commercial operation by the end of 2020, with the balance of the project delivered in early 2021. Dominion previously estimated the project would be completed in mid-2020.
Farrell also announced an increase in the estimated costs of the project, which in Dominion's most recent estimates in November were between $6.5 billion and $7 billion. Farrell said if the project is able to resume construction in the third quarter, the cost would increase by about $500 million to between $7 billion and $7.5 billion. Farrell said if the case has to go to the Supreme Court, which Dominion considers a possibility, the cost would increase by an additional $250 million.
Some of the company's other projects appear to be moving along, particularly in the Power Industry. Among these is a 12-MW offshore wind pilot project in Virginia. The project recently received permitting approval in the state. Farrell said, "Construction of the project is expected to begin this second quarter, with a commercial in-service date in late 2020." The project will cost approximately $300 million to construct. For more information, see Industrial Info's project report.
Also in the second quarter, Dominion plans to begin construction of its 150-MW Colonial Trail West solar farm near Surry, Virginia. Construction is expected to be completed before the end of the year. Strata Solar LLC (Chapel Hill, North Carolina) is providing EPC on the project, which has an estimated total investment value of $250 million. For more information, see Industrial Info's project report.
Dominion reported full-year 2018 net income of $2.45 billion, compared with $3 billion in 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In the company's fourth-quarter earnings conference call, Dominion Chief Financial Officer Jim Chapman said, "We placed both the Cove Point liquefaction project and Greensville Power Station into commercial service, collectively representing over $5 billion of invested capital."
The Cove Point liquefied natural gas (LNG) terminal was the second LNG production and export terminal to come online in the U.S., after Cheniere Energy Incorporated's (NYSE:LNG) (Houston, Texas) Sabine Pass terminal in Louisiana. The project liquefies 1 billion cubic feet per day (Bcf/d) of natural gas to produce 5.25 million tons per year of LNG. For more information, see Industrial Info's project report.
The company's other major project to wrap up in 2018, the Greensville Power Station in Virginia, was completed late in the fourth quarter. Construction on the $1.3 billion project began in 2015, with Fluor Corporation (NYSE:FLR) (Irving, Texas) providing engineering, procurement and construction (EPC). The combined-cycle plant has a generating capacity of 1,588 megawatts (MW). For more information, see Industrial Info's project report.
The company's next major project, the Atlantic Coast natural gas pipeline, has faced a slew of regulatory setbacks, resulting in increased pricing and project delays. Led by Dominion, the project is joint venture with Duke Energy Corporation (NYSE:DUK) and AGL Resources (Atlanta, Georgia), a unit of Southern Company (NYSE:SO) (Atlanta). The pipeline will carry 1.5 Bcf/d and run about 600 miles from West Virginia to eastern North Carolina.
In December, the project faced two challenges from a U.S. appeals court. In the first, the court stayed a permit from the U.S. Fish and Wildlife Service, which authorized the pipeline to built in areas where there are threatened or endangered species. In the second, permits from the U.S. Forest Service were stayed by the court, which claimed the agency "abdicated its responsibility to preserve national forest resources" when it issued the permits. This decision was made by a panel of three judges, but was recently frozen as the court decides whether it will hear in front of all judges on the court. Dominion was forced to stop construction on most of the pipeline in December. For more information, see Industrial Info's project reports on the West Virginia, Virginia and North Carolina sections of the pipeline.
Despite the setbacks, the company remains optimistic about the future of Atlantic Coast, although even in the best cases scenario, delays are expected. In the company's conference call, Chief Executive Officer Tom Farrell said, "As for the Atlantic Coast Pipeline and supply header projects, we remain highly confident in the successful and timely resolution of all outstanding permit issues, as well as the ultimate completion of the entire project... Our current expectation is that full construction could restart in the third quarter." If this is the case, sections of the pipeline could enter commercial operation by the end of 2020, with the balance of the project delivered in early 2021. Dominion previously estimated the project would be completed in mid-2020.
Farrell also announced an increase in the estimated costs of the project, which in Dominion's most recent estimates in November were between $6.5 billion and $7 billion. Farrell said if the project is able to resume construction in the third quarter, the cost would increase by about $500 million to between $7 billion and $7.5 billion. Farrell said if the case has to go to the Supreme Court, which Dominion considers a possibility, the cost would increase by an additional $250 million.
Some of the company's other projects appear to be moving along, particularly in the Power Industry. Among these is a 12-MW offshore wind pilot project in Virginia. The project recently received permitting approval in the state. Farrell said, "Construction of the project is expected to begin this second quarter, with a commercial in-service date in late 2020." The project will cost approximately $300 million to construct. For more information, see Industrial Info's project report.
Also in the second quarter, Dominion plans to begin construction of its 150-MW Colonial Trail West solar farm near Surry, Virginia. Construction is expected to be completed before the end of the year. Strata Solar LLC (Chapel Hill, North Carolina) is providing EPC on the project, which has an estimated total investment value of $250 million. For more information, see Industrial Info's project report.
Dominion reported full-year 2018 net income of $2.45 billion, compared with $3 billion in 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
