Dominion's $15.4 Billion in Projects Led by Natural Gas Pipeline Growth

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Researched by Industrial Info Resources (Sugar Land, Texas)--Dominion Energy Incorporated (NYSE:D) (Richmond, Virginia) notched up progress on a pair of natural gas pipeline projects in first-quarter 2018, as well as a major natural gas-fired power plant, all of which are on their way to wrapping up next year, while ensuring a foothold in the booming liquefied natural gas (LNG) market with the completion of its Cove Point facility in Maryland. Industrial Info is tracking $15.4 billion in active projects from Dominion, about 25% of which is nearing or under construction, including the Atlantic Coast and Supply Header pipelines.

Click on the image at right for a graph detailing Dominion's active projects, by U.S. state.

Construction on one of Dominion's most anticipated projects, the $1.3 billion Greensville County Power Station in Emporia, Virginia, is on time, on budget and 84% complete, according to Dominion executives in a quarterly earnings-related conference call. The natural gas-fired, combined-cycle (NGCC) facility is expected to generate 1,588 megawatts (MW) from three Mitsubishi combustion turbines and an Alstom steam turbine.

Officials said all major equipment at the facility is set, flushing of the combustion turbines is nearly complete, and the primary natural gas line and metering and regulation stations are complete and awaiting final commissioning. Dominion expects to achieve first fire this quarter, and finish construction and begin commercial operations late in the fourth quarter. For more information, see Industrial Info's project report.

Dominion also is seeking permits for the proposed, $225 million Coastal Virginia Offshore Windfarm near Virginia Beach, Virginia. The 12-MW facility, to be located about 27 miles offshore, would comprise a pair of Alstom S.A.'s Halide 150 wind turbines. For more information, see Industrial Info's project report.

Dominion also finished construction and began service in April on its $4 billion Cove Point LNG facility in Lusby, Maryland, which will produce and export 5.25 million tons per year of LNG to global markets. The company has signed 20-year tolling agreements with Sumitomo Corporation, Tokyo Gas and GAIL Global. For more information, see Industrial Info's project report.

Atlantic Coast, Supply Header Pipelines Chugging Along
Dominion's two biggest pipeline projects, the Atlantic Coast and Supply Header, are under construction and are expected to be in service in the fourth quarter of 2019.

The Atlantic Coast pipeline, which would carry up to 1.5 billion cubic feet per day (Bcf/d) of natural gas about 600 miles from West Virginia to North Carolina, has four major segments that began construction earlier this year and are expected to wrap up in late 2019:

• $525 million segment from Harrison, Lewis and Pocahontas counties, West Virginia, to Nottoway and Dinwiddie counties, Virginia, running 83 miles; see project report
• $150 million segment from Brunswick County to Greensville County, Virginia, running 2.5 miles; see project report
• $525 million segment from Chesapeake, Virginia, to Northampton County, North Carolina, running 83 miles; see project report
• $675 million segment from Northampton County to Robeson County, North Carolina, running 186 miles; see project report

Dominion executives also said the company has begun to receive approvals to begin full construction on numerous parts of the Atlantic Coast pipeline, including several compressor stations:

• $120 million Marts Compressor Station in Weston, West Virginia; see project report
• $120 million Buckingham Compressor Station in Buckingham, Virginia; see project report
• $100 million Northampton Compressor Station in Pleasant Hill, North Carolina; see project report

The Atlantic Coast Pipeline is being constructed in cooperation with Duke Energy Corporation (NYSE:DUK) (Charlotte, North Carolina), Piedmont Natural Gas Company (NYSE:PNY) (Charlotte, North Carolina) and Southern Company (NYSE:SO) (Atlanta, Georgia).

"Despite the late start [in January], we were able to complete tree felling on more than 200 miles of the 600-mile project, which is about three quarters of our planned miles this year," said Thomas Farrell, the chief executive officer of Dominion in the quarterly earnings call. "We've also begun to receive approvals to begin full construction in numerous areas, including several compressor stations and other facilities."

Last month, the U.S. Federal Energy Regulatory Commission (FERC) gave Dominion its OK to begin full construction on part of the Supply Header project, which is expected to broaden the supply of natural gas in Pennsylvania and West Virginia. Dominion executives said they have filed with FERC to begin full pipeline construction in West Virginia and plan to make a similar filing for North Carolina in the near future. Industrial Info is tracking four aspects of the project that already are under construction:

• $15 million pipeline loop from Westmoreland County to Greene County, Pennsylvania, running four miles; see project report
• $85 million pipeline loop from Harrison, Doddridge and Tyler counties to Wetzel County, West Virginia, running 34 miles; see project report
• $65 million in addition and modifications at the J.B. Tonkin Compressor Station in Murrysville, Pennsylvania; see project report
• $40 million in addition and modifications at the Crayne Compressor Station in Waynesburg, Pennsylvania; see project report
• $75 million in addition and modifications at the Mockingbird Hill Compressor Station in Pine Grove, West Virginia; see project report

The pipeline loops and the J.B. Tonkin and Crayne stations are expected to wrap up in the first quarter of 2019, while the Mockingbird Hill station is set to wrap up in the fourth quarter.

Dominion's first-quarter revenues were reported to be $3.47 billion, a 2.4% increase from first-quarter 2017, while net income stood at $503 million, a 20.4% decrease, mostly due to one-time expenses. Starting July 1, the company expects its customers to see cheaper energy bills, a result of savings from the corporate tax cut in last year's federal tax law.

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