Transco and Piedmont Form Pine Needle LNG Company to Construct LNG Facility in North Carolina

Pine Needle LNG Company, a joint venture between Transcontinental Gas Pipe Line Corporation (Transco) and Piedmont Natural Gas Company, Inc., plans to construct a liquified natural gas (LNG) peak demand facility in North Carolina. The facility, estimated to cost $107 million, will provide peak demand and storage service to Piedmont and other customers on Transco's pipeline system. With storage capacity of four billion cubic feet and vaporization capability of 400 million cubic feet per day, the new facility will meet a critical need for additional natural gas peak demand services in the southeast market area.

Key Takeaways:

• Pine Needle LNG Company is a 50-50 joint venture between Transco and Piedmont Natural Gas Company, Inc.
• The LNG facility, estimated to cost $107 million, will be located near Transco's mainline in North Carolina.
• The facility will have storage capacity of four billion cubic feet and vaporization capability of 400 million cubic feet per day.
• Transco will serve as operator and dispatch agent, with affiliates of Transco and Piedmont owning 50% of the facility.
• Pine Needle LNG plans to seek non-recourse project financing for the facility investment.
• The new facility will provide peak demand and storage service to Piedmont and other customers on Transco's pipeline system in the southeast market area.
• The project will meet a critical need for additional natural gas peak demand services in the region.
• The facility will be submitted to the Federal Energy Regulatory Commission (FERC) for approval this fall, pending which construction will begin in early 1997.

Statistics:

• Estimated cost of the LNG facility: $107 million
• Storage capacity of the facility: four billion cubic feet
• Vaporization capability of the facility: 400 million cubic feet per day
• Number of customers served by Transco's pipeline system: various
• Number of residential, commercial, and industrial customers served by Piedmont Natural Gas Company, Inc.: over 525,000
• Number of propane customers served by Piedmont Natural Gas Company, Inc.: over 47,000

Sources:

• (PRNewswire, June 5 /PRNewswire/, Charlotte, N.C.)
• Transcontinental Gas Pipe Line Corporation (Transco)
• Piedmont Natural Gas Company, Inc.
• (FINANCIAL NEWS, North Carolina Gazette June 5, 1995)
• Federal Energy Regulatory Commission (FERC)