CHARLOTTE, N.C., April 1, 2014 /PRNewswire/ -- Duke Energy
(NYSE: DUK) and Piedmont Natural Gas (NYSE: PNY) this week will
jointly issue a solicitation for proposals to build and operate a
second major wholesale natural gas pipeline into North Carolina to meet growing demand for the
fuel in the Carolinas and possibly surrounding states.
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, the two companies state in their
solicitation.
Currently, North Carolina is
served primarily by a single major wholesale interstate natural gas
pipeline that runs through the state.
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," the solicitation
says.
The two companies have "a strong preference" for a new pipeline
route that provides geographical diversity relative to the path of
North Carolina's existing major
wholesale interstate pipeline, the solicitation states.
Additionally, the new pipeline should allow for "future low-cost
expansions with minimal environmental impact."
This past winter's extremely cold temperatures resulted in high
natural gas demand throughout much of the nation, underscoring the
need for additional natural gas pipeline capacity, utility industry
observers have noted.
In addition, the construction of numerous natural gas-fired
power plants nationwide in the wake of coal-fired power plant
closures – due to environmental regulations and low natural gas
prices – has significantly increased demand for natural gas.
Duke Energy has opened five new, cleaner-burning 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.
Natural gas-fired power plants release far fewer air emissions
than do coal-fired power plants.
Duke Energy since 2005 has reduced company-wide carbon dioxide
emissions by 20 percent, sulfur dioxide emissions by 84 percent and
nitrogen oxide emissions by 63 percent by building natural
gas-fired power plants, closing coal-fired power plants and
installing additional emission control equipment.
Meanwhile, Piedmont's
residential, commercial and industrial customer demand for natural
gas continues to grow. Piedmont
also has become a major supplier of natural gas to power plants
operated by Duke Energy and other electric utilities.
Duke Energy and Piedmont both
view a new supply of natural gas as a powerful engine for statewide
economic development and job growth, potentially helping
North Carolina attract new,
gas-dependent companies and industries.
The new pipeline would generate a significant number of
construction jobs during its building process, as well as new tax
revenue for the communities through which it passes.
Duke Energy and Piedmont will
consider "a joint venture, ownership interest, strategic
partnership or other financial-based arrangement" in support of the
selected proposal, the solicitation says.
Specifically, the two companies seek an initial natural gas
pipeline capacity of as much as 900 million cubic feet per day,
with a target in-service date of late 2018.
The companies expect to select a proposal by late 2014.
About Duke Energy
Headquartered in Charlotte,
N.C., Duke Energy is a Fortune 250 company traded on the New
York Stock Exchange under the symbol DUK. More information about
the company is available at: www.duke-energy.com.
About Piedmont Natural Gas
Piedmont Natural Gas is an energy services company primarily
engaged in the distribution of natural gas to more than one million
residential, commercial, industrial and power generation utility
customers in portions of North
Carolina, South Carolina
and Tennessee, including customers
served by municipalities who are wholesale customers. Our
subsidiaries are invested in joint venture, energy-related
businesses, including unregulated retail natural gas marketing, and
regulated interstate natural gas transportation and storage, and
regulated intrastate natural gas transportation businesses. More
information about Piedmont Natural Gas is available on the Internet
at http://www.piedmontng.com/.
Forward-Looking Statement
This press release contains forward-looking statements. These
statements are based on management's current expectations and
information currently available and are believed to be reasonable
and are made in good faith. However, the forward-looking statements
are subject to future events, risks, uncertainties and other
factors that could cause actual results to differ materially from
those projected in the statements. Factors that may make the actual
results differ from anticipated results include, but are not
limited to, weather conditions, rate of customer growth, the cost
and availability of natural gas, competition from other energy
providers, new legislation and regulations and application of
existing laws and regulations, economic and capital market
conditions, the cost and availability of labor and materials and
other uncertainties, all of which are difficult to predict and some
of which are beyond our control. For these reasons, you should not
place undue reliance on these forward-looking statements when
making investment decisions. The words "expect," "believe,"
"project," "anticipate," "if," "likely," "intend," "should,"
"could," "assume," "can," "estimate," "forecast," "future,"
"indicate," "outlook," "plan," "predict," "seek," "target,"
"would," "may," "guidance," and variations of such words and
similar expressions are intended to identify forward-looking
statements. Forward-looking statements are only as of the date they
are made and we do not undertake any obligation to update publicly
any forward-looking statement, either as a result of new
information, future events or otherwise. More information about the
risks and uncertainties relating to these forward-looking
statements may be found in Piedmont's latest Forms 10-K and 10-Q and in
Duke Energy's and its subsidiaries' reports filed with the SEC and
available at the SEC's website at www.sec.gov.
Duke Energy media contact: Dave
Scanzoni
24-Hour: 800.559.3853
Duke Energy investor contact: Bill
Currens
704.382.1603
Piedmont media contact:
David Trusty
704.731.4391
david.trusty@piedmontng.com
Piedmont investor contact:
Nick Giaimo
704.731.4952
nicholas.giaimo@piedmontng.com
SOURCE Duke Energy