November 20, 2006
CLARKSBURG, W.Va. – Dominion Transmission Inc., a subsidiary of Dominion (NYSE; D), one of the nation’s largest producers of energy, announced recently that it has filed an application with the Federal Energy Regulatory Commission to expand its pipeline system in southern West Virginia. The TL-263 Expansion Project, which would be built in Wyoming, Boone and Kanawha counties, would provide natural gas producers with increased access into Dominion’s interstate gas transmission system.
The southern West Virginia area produces significant volumes of natural gas. For the last several years, a lack of pipeline infrastructure as well as constraints on existing capacity have caused difficulties for producers in this region in delivering their gas to the market and, at times, has resulted in shut-ins of production.
The TL-263 Expansion Project would provide additional access by upgrading certain facilities on DTI’s southern West Virginia system to create 21,250 dekatherms a day of additional capacity, nearly a 30 percent increase over current capacity.
Specifically, DTI proposes to replace six sections of Line TL-263 to increase its capability. The company also proposes to install a new line, designated as TL-570, which will be parallel to its TL-263 transmission pipeline. The new line would consist of 6.43 miles of 12-inch pipe beginning near Pond Fork and heading north toward Chelyan in Boone County. In addition, DTI proposes to modify portions of its Loup Creek Station to accept the additional supplies from local natural gas producers.
Assuming FERC approval, construction is planned for next summer, with an in-service date of November 2007. The TL-263 project is expected to cost about $15 million. DTI is considering additional modifications to TL-263 in the future. This would enable additional gas production from southern West Virginia to reach markets throughout the East.
Dominion Transmission operates 7,800 miles of natural gas transmission lines stretching from Ohio through the Eastern and Mid-Atlantic states. It also operates one of the nation’s largest underground natural gas storage systems with more than 950 billion cubic feet of storage capacity.
Dominion has an energy portfolio of about 28,100 megawatts of generation, about 6.6 trillion cubic feet equivalent of proved natural gas reserves, and retail energy customers in 11 states. For more information about Dominion, visit the company’s Web site at www.dom.com.
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