Dominion Resources (NYSE:D) announced today that it is filing for approval to expand its natural-gas transmission infrastructure to serve more National Grid (NYSE:NGG) customers in New York, as well as growing natural-gas suppliers in the Appalachian basin.
The energy producer and transporter is seeking Federal Energy Regulatory Commission authorization for two projects it estimates will cost a total of $235 million.
"Natural gas produced from the Marcellus and Utica shales in the Appalachian region of West Virginia and Ohio is expected to continue its strong and rapid growth," Diane Leopold, president of Dominion Energy, said in today's press release. "Our interstate pipeline system is uniquely positioned to transport Appalachian production as our pipelines traverse the area of significant supply growth. Additional firm transportation capacity for new natural gas supplies for both projects also will alleviate the possibility of shortages by providing more gas to market."
Both projects include upgrading and constructing new compressor stations, and the Appalachian project would involve a new interconnection to push Appalachia's gas west to Texas Eastern Transmission and the Rockies Express Pipeline.
If the commission approves the two projects by mid-2015, National Grid subsidiaries are expected to enjoy improved natural-gas access by November 2016, while Appalachia will be able to push its natural gas further at that same time frame.