FERC okays pipeline supporting coal-to-gas switching at International Paper

The members of the Federal Energy Regulatory Commission on June 2 approved a gas pipeline project of Dominion Carolina Gas Transmission LLC that will support coal-to-gas switching at an International Paper plant in South Carolina.

In May 2015, Dominion Carolina Gas Transmission applied for a certificate of public convenience and necessity authorizing it to construct and operate pipeline, metering, and appurtenant facilities in Calhoun and Richland counties, South Carolina (called the “Columbia to Eastover Project”). 

Dominion Carolina operates and maintains approximately 1,500 miles of interstate natural gas pipeline in Georgia and South Carolina.

The Columbia to Eastover Project will enable Dominion Carolina to provide 18,000 dekatherms (Dth) per day of firm transportation service to International Paper’s existing pulp and paper plant, known as the Eastover Plant, in Richland County, South Carolina. Specifically, Dominion Carolina proposes to construct and operate:

  • A new take off station that consists of a tap and pig launcher on Dominion Carolina’s existing 20-inch-diameter Sally to Eastman pipeline located near the DAK Americas LLC facility in Calhoun County, South Carolina.
  • A new delivery point that includes a pig receiver and metering and regulation (M&R) equipment located at International Paper’s Eastover Plant.
  • Approximately 28 miles of new 8-inch-diameter pipeline originating near the DAK facility, extending east and terminating at the new International Paper M&R Station.

Dominion Carolina conducted an open season in 2013. As a result of the open season, Dominion Carolina executed a binding precedent agreement with International Paper for 15,800 Dth per day of firm transportation service to the Eastover Plant with a 20-year primary term.

Dominion Carolina and International Paper have an existing firm transportation service agreement for 2,200 Dth per day of truck-delivered compressed natural gas with a delivery point in Kershaw County, South Carolina. Under the precedent agreement, Dominion Carolina will transport an additional 15,800 Dth per day, from its existing interconnection with Southern Natural Gas Co. LLC in Aiken County, South Carolina, to the proposed International Paper M&R Station at the Eastover Plant.

In addition, Dominion Carolina and International Paper have agreed to change the primary delivery point listed in the existing 2,200 Dth per day service agreement to allow for delivery of gas via the proposed pipeline directly to the Eastover Plant. Therefore, the Columbia to Eastover Project will enable Dominion Carolina to provide a total of 18,000 Dth per day of firm transportation service to International Paper.

Dominion Carolina said the project will allow International Paper to increase its use of natural gas at the Eastover Plant, replacing the use of coal and fuel oil, as well as the truck-delivered compressed natural gas. Dominion Carolina asserts that the proposed project will help International Paper meet new air emissions requirements mandated by the U.S. Environmental Protection Agency.

Dominion Carolina estimates that these proposed facilities will cost $36,255,867.

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.