Dominion seeks approval for gas pipeline capacity to serve two new power plants

Dominion Transmission Inc. (DTI) applied May 15 with the Federal Energy Regulatory Commission for a Certificate of Public Convenience and Necessity on a series of gas transmission projects that would provide natural gas to two planned power plants in the Washington DC area.

This certificate would authorize DTI to construct, install, own, operate and maintain certain facilities located in Clinton, Franklin, and Centre counties, Pennsylvania; Frederick County, Maryland; and Loudoun and Fauquier counties, Virginia. This Leidy South Project will provide firm transportation service of 155,000 dekatherms per day (Dt/d) from the Leidy Interconnect in Clinton, Pa., to points in Loudoun, Va. The transportation service will be made available through upgrades and modifications to DTI’s existing system at an estimated cost of about $210 million.

The project is designed to provide natural gas firm transportation services in the Mid-Atlantic region to improve regional energy security and help meet the increasing demand for natural gas to fuel existing and potential power generation facilities. The project customers, who have entered into binding precedent agreements for all of the project capacity, consist of: Panda Stonewall LLC, Virginia Power Services Energy and Mattawoman Energy LLC.

DTI, a subsidiary of Dominion Resources (NYSE: D) proposes to commence construction of the project facilities in May 2016 in order to meet an in-service date for the contracted firm transportation service on or before Oct. 1, 2017. To meet this schedule, DTI requested that the commission issue a final order approving the project by March 2016.

The three customers for this gas are:

  • Panda Stonewall LLC (funded by Panda Power Funds), which is developing the Panda Stonewall Power Project, a 750-MW natural gas-fired combined-cycle plant located four miles south/southeast of Leesburg, Va.
  • Virginia Power Services Energy, another Dominion Resources subsidiary, which will utilize the natural gas to help support its existing fleet of power generation facilities.
  • Mattawoman Energy LLC (funded by Panda Power Funds), which is proposing the Panda Mattawoman Power Project, an 859-MW combined-cycle station located in Brandywine, Md. The Leidy South Project will transport gas for Mattawoman Energy only to Loudoun County, Va. Further transportation of the gas to the Mattawoman plant would require subsequent transportation off of DTI’s system. The Leidy South Project, however, is not dependent on whether or not Mattawoman Energy contracts for any further transportation or succeeds in developing its proposed power plant, said Dominion. It is DTI’s understanding that Mattawoman Energy has contracted with an asset manager to manage its contracted gas pipeline project capacity, which has other value and uses without regard to the proposed power plant.

DTI conducted an open season from April 2, 2014 through April 11, 2014 for the proposed firm transportation services offered for this project. As a result of the open season, DTI executed binding precedent agreements for firm transportation service totaling 155,000 Dt/d with Panda Stonewell (55,000 Dt/d), Virginia Power Service Energy (45,000 Dt/d) and Mattawoman Energy (55,000 Dt/d). DTI conducted a reverse open season during the same period, but did not receive any bids in response to the posting.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.