Dominion Makes Headway on Power Projects, Cove Point LNG

Researched by Industrial Info Resources (Sugar Land, Texas)--Dominion Resources Incorporated (NYSE:D) (Richmond, Virginia) on Wednesday reported second-quarter net income of $452 million, compared with $413 million for the same period of 2015. The rise in income came despite headwinds from milder weather and storm reconciliation spending. The company also provided guidance regarding many of its capital growth projects, including solar power facilities and its Cove Point liquefied natural gas (LNG) production facility.

The largest project that Dominion wrapped up during the second quarter was the 1,358-megawatt (MW) Brunswick Power Station in Virginia, which began commercial operations in April. Construction on the facility began in August 2013. The project had an estimated total investment value of $1.3 billion.

Chief Executive Officer Tom Farrell also discussed another large power project in Virginia. "We have begun construction of the 1,588-MW Greensville County Power Station," he said. "The air permit for the project was issued by the Virginia Department of Environmental Quality on June 17 and a full notice to proceed was given to Fluor (NYSE:FLR) that same day. The $1.3 billion project is expected to achieve commercial operations in late 2018."

Continued demand for low-carbon and no-carbon generation continues driving Dominion into renewable energy projects. Farrell reported that the company's Three Cedars solar project in Utah was expected to be in service during the third quarter. Construction of the $320 million, 210-MW project began last summer. Dominion also has a number of solar projects under way in Virginia. Farrell reported that the 80-MW project on Virginia's Eastern Shore will be completed by the end of the year. The output from the facility is under contract to Amazon.com Incorporated (NASDAQ:AMZN) (Seattle, Washington).

The company's largest project, under the auspices of Dominion Energy, is also making headway. "Our Cove Point liquefaction project is now 67% complete with over 1,800 construction workers on site," said Farrell. "Our engineering, procurement and construction contractor, IHI Kiewit, has installed well over half the 21,500 tons of structural steel required and the piping installation is proceeding on plan. We're on schedule to have all major equipment on foundations by the end of the year. ...The project continues on time and on budget for a late 2017 in-service date."

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