Atlantic Coast Pipeline signs construction contract

Published: Sep. 21, 2016 at 1:32 PM EDT
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The Atlantic Coast Pipeline, a 600-mile natural gas transmission line proposed to run from West Virginia through Virginia to North Carolina, is one step closer to reality.


On Wednesday, Dominion announced that the company has signed a construction contract with Spring Ridge Constructors, LLC, which is a joint venture of leading natural gas pipeline construction companies.

The venture is comprised of four companies: Price Gregory International, Inc., a Quanta Services, Inc. (NYSE: PWR) company; U.S. Pipeline, Inc.; SMPC, LLC; and Rockford Corporation, a Primoris Services Corporation (NASDAQ: PRIM) company.


Spring Ridge Constructors are signed on as the lead construction contractor for the pipeline project, though the pipeline has yet to be approved by the Federal Energy Regulatory Commission (FERC).

If the pipeline is approved, Dominion has construction scheduled to begin in the fall of 2017.

Dominion says that economic impact studies show construction of the pipeline would generate more than 17,000 jobs, $2.7 billion in total

economic activity and $4.2 million in average annual tax revenue for cities and counties in the project area.

Studies sponsored by the Southern Environmental Law Center and Appalachian Mountain Advocates say existing pipelines can supply more than enough fuel through 2030, but Dominion points out a growing demand for natural gas in the states affected by the Atlantic Coast Pipeline.


Dominion selected Spring Ridge Constructors (SRC) after an extensive bidding process conducted by Atlantic Coast Pipeline, LLC. They say the four companies encompassed by SRC account for a significant portion of the large-diameter natural gas pipeline construction spread capacity in the U.S.

“We are excited to work with SRC, which has assembled four of the nation’s leading and most-qualified pipeline builders for this project,” said Diane Leopold, president of Dominion Energy. “These companies have extensive experience in building large-scale, complex projects like the Atlantic Coast Pipeline, and their commitment to safe construction practices and best-in-class standards align with our expectations for the project.”

“The selection of our lead construction contractor is another significant milestone for the Atlantic Coast Pipeline and represents one more step toward making this project a reality and securing the energy future of our region,” Leopold added.

“SRC is pleased to have been selected by ACP as the constructor of this vital project which serves to strengthen the nation’s energy infrastructure,” said Dan Plume, SRC project director. “The members of SRC are aligned in purpose with the common goals of safe construction practices, a commitment to environmental stewardship and quality construction. The SRC team leads the industry with a combined 200 years of expertise and leadership in the construction of large diameter pipelines that encompass all regions and terrains across North America. We are also excited about the positive economic impact this project will have in communities across these three states, where SRC and its subcontractors expect to hire thousands of local workers and enlist the services of many local businesses.”


In what Dominion calls "another significant milestone for the project," the FERC issued a 'Notice of Schedule' in early August, which establishes a timeline for the remainder of the project's federal environmental review process.

Based on that schedule, Atlantic Coast Pipeline, LLC expects to receive a FERC certificate in the late summer or fall of 2017, and they would begin construction shortly after. Following that same timeline, the pipeline would be completed and in service by late 2019.

The company is working with its contractors to try and find ways to complete construction even sooner.


Atlantic Coast Pipeline, LLC is composed of four major U.S. energy companies – Dominion, Duke Energy, Piedmont Natural Gas and Southern Company Gas. The joint venture partners plan to build and own the $4.5 billion-to-$5 billion pipeline, which would help meet the growing clean energy needs of Virginia and North Carolina by providing direct access to low-cost, abundant supplies of natural gas being produced in the nearby Marcellus and Utica shale basins of West Virginia, Pennsylvania and Ohio.


The pipeline has been a major source of contention among people living in counties where it will pass through, like Augusta and Nelson Counties, and WHSV has covered protests, studies, debates, and far more in connection with the pipeline throughout recent years. You can find some of those stories in the Related Stories section of this page.