Joint venture awarded contract to build 600-mile Atlantic Coast pipeline

Atlantic Coast Pipeline, LLC said Sept. 21 that it has signed a construction contract with Spring Ridge Constructors, LLC (SRC) to build the proposed 600-mile natural gas transmission pipeline that would serve Virginia and North Carolina.

Spring Ridge is a joint venture of leading natural gas pipeline construction companies. Comprised of Price Gregory International, a Quanta Services (NYSE: PWR) company; U.S. Pipeline, Inc.; SMPC, LLC; and Rockford Corp., a Primoris Services Corp. (NASDAQ: PRIM) company. The joint venture will serve as the Atlantic Coast Pipeline’s lead construction contractor.

Pending approval by the Federal Energy Regulatory Commission (FERC), the Atlantic Coast Pipeline (ACP) would run from Harrison County, West Virginia., southeast through Virginia with a lateral extension to Chesapeake, Virginia and then south through eastern North Carolina to Robeson County.

If approved, construction is scheduled to begin in the fall of 2017.

SRC was selected as the most-qualified contractor for the project after an extensive, competitive bidding process conducted by Atlantic Coast Pipeline, LLC. The four SRC companies account for a significant portion of the large-diameter natural gas pipeline construction spread capacity in the United States, the pipeline organization said.

“We are excited to work with SRC, which has assembled four of the nation’s leading and most-qualified pipeline builders for this project,” said Diane Leopold, president of Dominion Energy. “These companies have extensive experience in building large-scale, complex projects like the Atlantic Coast Pipeline, and their commitment to safe construction practices and best-in-class standards align with our expectations for the project.”

“The selection of our lead construction contractor is another significant milestone for the Atlantic Coast Pipeline and represents one more step toward making this project a reality and securing the energy future of our region,” Leopold added.

Atlantic Coast Pipeline, LLC is composed of four major U.S. energy companies – Dominion (NYSE:D); Duke Energy (NYSE:DUK), Piedmont Natural Gas (which is being bought by Duke) and Southern Company Gas. Southern Company Gas is the former AGL Resources, which is now owned by Southern (NYSE:SO) The joint venture partners plan to build and own the $4.5bn-to-$5bn pipeline, which would help meet the growing clean energy needs of Virginia and North Carolina by providing direct access to natural gas being produced in the nearby Marcellus and Utica shale basins of West Virginia, Pennsylvania and Ohio.

The Southern Environmental Law Center (SELC) released a study Sept. 12 that claims there is insufficient demand to justify construction of the planned Atlantic Coast and Mountain Valley natural gas pipelines.

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.