What is the Atlantic Coast Pipeline project?

The Atlantic Coast Pipeline is a proposed 550-mile natural gas pipeline project that will extend into North Carolina. It is being developed through a joint venture involving Duke Energy and other energy companies.

What is Duke Energy's role and investment in this project?

Duke Energy will have a 40% ownership interest in the joint venture, Atlantic Coast Pipeline, LLC. The company's regulated subsidiaries are also expected to enter into long-term gas transportation agreements with the pipeline.

What is the estimated cost of the Atlantic Coast Pipeline, and when is it expected to be operational?

The construction cost is estimated to be between $4.5 and $5 billion, excluding financing costs. Construction is anticipated to start in mid-2016, with service expected to commence in late 2018.

What are the key regulatory approvals required for this project?

The project requires approvals from the Federal Energy Regulatory Commission (FERC) for interstate pipeline operations and from the North Carolina Utilities Commission for the gas transportation agreements between Duke Energy's regulated subsidiaries and the pipeline.

Duke Energy CORP 8-K SEC Disclosure

Summary

Duke Energy Corporation (DUK) announced on September 2, 2014, a significant strategic move into natural gas infrastructure through the formation of a joint venture to construct and operate the Atlantic Coast Pipeline. This 550-mile natural gas pipeline project, with an estimated construction cost of $4.5 to $5 billion (excluding financing), will extend into North Carolina. Duke Energy will hold a substantial 40% interest in this joint venture, named Atlantic Coast Pipeline, LLC, alongside partners Dominion Resources (45%), Piedmont Natural Gas (10%), and AGL Resources (5%). This venture represents a considerable investment in natural gas transportation capacity, which is expected to serve Duke Energy's regulated subsidiaries, Duke Energy Carolinas and Duke Energy Progress, under 20-year gas transportation agreements, pending regulatory approval. Construction is slated to commence in mid-2016, with service anticipated by late 2018, subject to approvals from the Federal Energy Regulatory Commission and the North Carolina Utilities Commission. This development signals Duke Energy's commitment to diversifying its energy portfolio and securing long-term natural gas supply for its customer base.

Key Highlights

1Duke Energy formed a joint venture to build and operate the Atlantic Coast Pipeline, a 550-mile natural gas pipeline into North Carolina.
2The estimated construction cost for the pipeline is between $4.5 and $5 billion, excluding financing.
3Duke Energy will hold a 40% ownership stake in the joint venture, Atlantic Coast Pipeline, LLC.
4Other partners in the joint venture include Dominion Resources (45%), Piedmont Natural Gas (10%), and AGL Resources (5%).
5Duke Energy's regulated subsidiaries plan to enter into 20-year gas transportation agreements with the pipeline company, subject to regulatory approval.
6Construction is expected to begin in mid-2016, with service targeted for late 2018.
7Project approvals are contingent on the Federal Energy Regulatory Commission (FERC) and the North Carolina Utilities Commission.

Duke Energy CORP 8-K Report, Corporate Update (Sep 2, 2014)

Summary

Key Highlights

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