Progress Energy Carolinas new natural gas power plant secures fuel supply

Charlotte, N.C., April 15, 2010 – Piedmont Natural Gas agreed with Progress Energy Carolinas to provide natural gas delivery service to the electric utility’s recently announced power generation facility to be built at its existing Sutton site near Wilmington, N.C.

Piedmont will construct about 133 miles of transmission pipeline and install 23,000 HP of new compression facilities to serve the new 620 MW natural gas-fired combined cycle Sutton plant.

Commenting on the announcement, North Carolina Governor Beverly Perdue said, “We welcome today’s announcement which represents not only a significant investment by Piedmont Natural Gas and Progress Energy Carolinas in critical energy infrastructure for our state but also advances our joint efforts to create a cleaner environment for the benefit of all North Carolinians.”

Piedmont’s capital investment in the pipeline and compression facilities is estimated at $217 million. The new natural gas facilities will not only serve Progress Energy Carolinas’ requirements at its new Sutton power plant but will also create cost effective expansion capacity that Piedmont will use to help serve the growing natural gas requirements of its other customers in the eastern part of North Carolina.

Progress Energy Carolinas’ subscription to the natural gas expansion capacity is supported by a long-term service agreement with Piedmont. Subject to approval by the North Carolina Utilities Commission, Piedmont will begin construction of the new natural gas pipeline and compression facilities early in 2011 and be ready for service in June 2013.

 

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