Transcontinental Gas Pipe Line Corp., Houston, and Piedmont Natural Gas Co. Inc., Charlotte, N.C., have signed a letter of intent to build a liquefied natural gas terminal in North Carolina.
The 50-50 partners in Pine Needle LNG Co. will seek approval from the Federal Energy Regulatory Commission this fall to build, own, and operate the peak demand facility. Transco will be operator and dispatch agent.
The plant, to be built near Transco's main line in North Carolina, will have a storage capacity of 4 bcf and vaporization capacity of 400 MMcfd.
The new facility will provide peak demand and storage service to Piedmont and other customers on Transco's pipeline system, mainly in the U.S. Southeast.
Pine Needle plans to seek nonrecourse project financing for the $107 million plant.
Subject to a definitive agreement, Pine Needle plans to hold an open season this summer for potential users of the terminal. And subject to FERC approval, construction will begin early in 1997, in time for service to begin for the 1999 heating season.
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