February 4, 2019 Read More →

Dominion: Atlantic Coast pipeline may cost $7.5 billion, not be built until 2021

Reuters:

Dominion Energy Inc said on Friday the estimated cost of its Atlantic Coast natural gas pipeline from West Virginia to North Carolina has risen to $7.0 billion-$7.5 billion, adding that it has delayed the expected completion date to early 2021.

The company said previously the project would cost an estimated $6.5 billion-$7.0 billion, excluding financing, and be completed in mid-2020 due to delays caused by numerous environmental lawsuits.

“We remain highly confident in the successful and timely resolution of all outstanding permit issues as well as the ultimate completion of the entire project,” Dominion Chief Executive Thomas Farrell said in the company’s fourth-quarter earnings release. He noted the company was “actively pursuing multiple paths to resolve all outstanding permit issues including judicial, legislative and administrative avenues.”

Earlier this week, the U.S. Fourth Circuit Court of Appeals stayed a previous court decision against U.S. Forest Service permits that allowed Dominion to build the Atlantic Coast pipeline across national forests and the Appalachian Trail.

Dominion said it expects construction could recommence on the full 600-mile (966-kilometer) pipeline route during the third quarter of 2019, with partial in-service in late 2020. When the company started work on Atlantic Coast in the spring of 2018, Dominion said it expected the project would cost an estimated $6.0 billion-$6.5 billion and be completed in late 2019.

More: Dominion delays U.S. Atlantic Coast nat gas pipe, boosts costs

 

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