Duke Energy and Piedmont Natural Gas have issued a request for proposal together to build and operate a second major wholesale natural gas pipeline into North Carolina, with a capacity of as much as 900 million cubic feet per day, to meet growing demand for the fuel in the Carolinas and, potentially, surrounding states.
This past winter's extremely cold temperatures and, subsequently, high natural gas demand underscores the need for additional natural gas pipeline capacity. Further, the replacement of closed coal plants with natural gas-fired power plants has significantly increased demand for natural gas.
Duke Energy's increasing reliance on natural gas to generate electricity, coupled with Piedmont's growing customer demand, warrant investment in a new pipeline that would bolster reliability and diversity of natural gas supplies, according to the solicitation. Further, it says that a new pipeline would expand Duke Energy's and Piedmont's "access to competitive, secure, diverse and abundant supplies," and "enhance the reliability of future natural gas deliveries into the state."
North Carolina is currently served primarily by a single major wholesale interstate natural gas pipeline that runs through the state. The companies are looking for a new pipeline route that provides geographical diversity relative to the path of North Carolina's existing pipeline, and one which would allow for future low-cost expansions with minimal environmental impact.
Duke Energy has opened five new natural gas-fired power plants in North Carolina since 2011 to replace older, less efficient coal-fired power plants. Piedmont pipelines supply natural gas to all five plants. Duke Energy also has proposed a new natural gas-fired power plant in South Carolina.
If all goes well, the in-service date for the pipeline should be late 2018.
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