Dominion, Consol reach deal

Posted June 15, 2010

Observer-Reporter

 

RICHMOND, Va. - Dominion Energy said Monday that its natural gas transmission and storage subsidiary, Dominion Transmission, has reached a 15-year agreement with Consol Energy Inc.'s CNX Gas subsidiary to transport the company's Marcellus Shale natural gas production.

Dominion said in a news release that the project will move supplies from various receipt points in Central and Southwestern Pennsylvania to a nexus of market pipelines and storage facilities in Leidy, Clinton County.

"Dominion is pleased to provide Consol with year-round access to growing Northeast markets and to provide another supply alternative for market area customers," said Gary Sypolt, chief executive officer of Dominion Energy.

Earlier this year, Richmond-based Dominion sold its natural gas exploration and production business to Consol so that the company could concentrate on its regulated businesses, including increased transportation and storage infrastructure opportunities resulting from Marcellus shale discoveries.

Dominion said it plans to file for a Federal Energy Regulatory Commission certificate in December. If the project is approved, construction is planned to begin in March 2012 and would enter service in November 2012. Construction plans include new compression facilities at three existing compressor stations in central Pennsylvania.

Dominion Transmission provides gathering, processing, transportation and storage services, operating in the heart of the Marcellus shale production area. It is one of the nation's largest producers and transporters of energy, with a portfolio of more than 27,500 megawatts of generation, 12,000 miles of natural gas transmission, gathering and storage pipeline and 6,000 miles of electric transmission lines. It operates the nation's largest natural gas storage system with 942 billion cubic feet of storage capacity and serves retail energy customers in 12 states.