FERC okays Dominion pipeline project that will supply two new power plants

The members of the Federal Energy Regulatory Commission (FERC) on Aug. 29 approved a gas pipeline expansion project of Dominion Transmission Inc. that will serve two new power plants in Virginia and Maryland. 

In May 2015, Dominion Transmission filed an application for authorization to construct and operate certain compression facilities in Pennsylvania, Maryland, and Virginia under the Leidy South Project. Dominion Transmission, part of Dominion Resources (NYSE: D), is engaged in the storage and transportation of natural gas in interstate commerce. Dominion operates approximately 7,800 miles of pipeline in Maryland, New York, Ohio, Pennsylvania, Virginia and West Virginia.

As part of the now-approved Leidy South Project, Dominion plans to:

  • replace two 1,100 horsepower (hp) compressor units with one 10,915 hp gas-fired compressor unit, and install approximately 1,300 feet of 30-inch-diameter discharge piping and auxiliary equipment at its existing Finnefrock Compressor Station in Clinton County, Pennsylvania;
  • install one suction filter/separator at its existing Centre Compressor Station in Centre County, Pennsylvania;
  • install one new 13,220 hp gas-fired compressor unit, auxiliary equipment, and buildings at its existing Chambersburg Compressor Station in Franklin County, Pennsylvania;
  • install one new 15,900 hp gas-fired compressor unit, auxiliary equipment, and buildings at its existing Myersville Compressor Station in Frederick County, Maryland;
  • install one new 8,000 hp electric compressor unit, auxiliary equipment, and buildings, as well as reconfigure two existing reciprocating engines at its Leesburg Compressor Station in Loudoun County, Virginia;
  • install a new cooler and filter separator at its existing Quantico Compressor Station in Fauquier County, Virginia; and
  • construct and operate a new metering and regulating (M&R) station in Loudoun County, Virginia (Stonewall M&R Station).

Dominion conducted an open season in April 2014. As a result of the open season, Dominion executed binding precedent agreements for 100% of the project’s capacity for 20-year terms with: Panda Stonewall LLC for 55,000 dekatherms (Dth) per day; Virginia Power Services Energy for 45,000 Dth per day; and Mattawoman Energy LLC for 55,000 Dth per day. Dominion also conducted a reverse open season but did not receive any bids in response to its posting.

Dominion said that the proposed Leidy South Project will enable it to provide 155,000 Dth per day of additional firm transportation service from the Leidy interconnection in Clinton County, Pennsylvania, to the Loudoun interconnection in Loudoun County, Virginia, for Virginia Power and Mattawoman and to the proposed new meter station in Loudoun County for Panda Stonewall. Dominion estimates the cost of the Leidy South Project will be $209,657,857.

Panda Stonewall and Mattawoman are developing natural-gas fired power facilities in Loudoun County, Virginia, and Prince George’s County, Maryland, respectively. Dominion will deliver gas to the Panda Stonewall Power Project at the proposed Stonewall M&R Station in Loudoun County, Virginia. The Panda Mattawoman Power Project will ultimately be served via the Dominion Cove Point pipeline, which also interconnects with the interstate pipeline systems of Transcontinental Gas Pipe Line Co. LLC and Columbia Gas Transmission LLC.

As for these power projects:

  • The Maryland Public Service Commission in November 2015 granted a final approval to the 990-MW Mattawoman project. Project company Mattawoman Energyis a project affiliate of Panda Power Funds. The project site is in Prince George’s County, Maryland, about 12 miles southeast of Washington D.C.
  • The Virginia State Corporation Commission on July 29 approved Virginia Electric and Power d/b/a Dominion Virginia Power (DVP) for authority for a transfer from Panda Stonewall to DVP of certain interconnection facilities associated with Panda Stonewall’s facility. The commission noted in the order: “DVP asked for expedited consideration of the Transfer in order for Panda Stonewall to commence energized testing of the Panda Plant by the end of July 2016. Pursuant to an Interconnection Construction Service Agreement between DVP, Panda Stonewall, and PJM Interconnection, L.C.C., Panda Stonewall financed the Interconnection Facilities construction costs of $7,231,536 and will transfer the Interconnection Facilities without consideration to DVP, which will operate the facilities on Panda Stonewall’s behalf.” Panda Stonewall is completing a 778-MW facility. Panda Power Funds holds the membership interests in Panda Stonewall.
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.