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Dominion Will Build Gas Processing Plant Near PPG

By Staff | Jan 19, 2011

Dominion (NYSE: D) announced Jan. 12 that it has reached an agreement with PPG Industries (NYSE: PPG) on an option for Dominion to purchase land at PPG’s Natrium site for the construction of a natural gas processing and fractionation facility.

Dominion Transmission, Dominion’s natural gas pipeline and storage subsidiary, plans to process natural gas and separate natural gas liquids at the 56-acre site as part of its previously announced Marcellus 404 Project. Engineering design and project planning for the plant are under way for the plant, which ultimately will employ 40 or 50. Financial terms were not disclosed.

The facility is designed to phase in service for processing up to 300,000 Mcf/d (thousand cubic feet per day) of natural gas. Fractionation capacity for up to 38,000 barrels per day of natural gas liquids would be available.

The Natrium site, in Marshall County about nine miles north of New Martinsville, is close to Dominion’s TL-404 pipeline, an existing transmission line in Ohio and West Virginia that Dominion plans to convert into a wet gas service line. The Natrium site also is close to railroad, pipeline, and barging services for marketing natural gas liquids.

Both West Virginia Governor Earl Ray Tomblin and Congressman David B. McKinley, who represents the district where the new facility will be located, welcomed the project to West Virginia.

“I am pleased to see business expanding in West Virginia because of the Marcellus Shale,” West Virginia Governor Earl Ray Tomblin said. “This resource holds great potential for our economy while meeting the growing energy needs of our state and our nation.”

“I want to thank Dominion for making this investment in West Virginia,” said U.S. Representative David B. McKinley. “It’s a reflection of their confidence in our state’s great potential. This project will create new jobs and opportunity for West Virginia. In addition, the new facility is an important piece of the puzzle in achieving energy independence for America. It’s good for our state and good for our country.”

“Further development of the Marcellus shale demands additional processing and fractionation capacity,” said Paul Ruppert, senior vice president of Dominion Transmission. “PPG’s Natrium site is strategically located close to our existing facilities, near high-BTU natural gas development, and it allows for transport of the fractionated liquids by numerous options. The project will help further develop West Virginia’s north central region.”

This is the second processing plant to be announced along the Ohio River, as Dallas-based Caiman Energy also has plans to invest $350 million to construct a facility to process liquid natural gas products.

“We continue to support projects that will provide investment and jobs in Marshall County,” said Michael H. McGarry, PPG senior vice president, commodity chemicals. “We are pleased to welcome Dominion to Natrium and we look forward to a successful collaboration.”

PPG’s Natrium plant produces chlorine, calcium hypochlorite, muriatic acid, and caustic soda, which are used in many applications that improve the quality of life, including purifying drinking water and in the production of most pharmaceuticals.

The plant employs about 530 people and has been in continuous operation since 1943.

Dominion Transmission provides natural gas gathering, processing, transportation, and storage services, operating in the heart of the Marcellus shale production area. It is a subsidiary of Dominion, one of the nation’s largest producers and transporters of energy, with a portfolio of approximately 27,600 megawatts of generation; 12,000 miles of natural gas transmission, gathering, and storage pipeline; and 6,000 miles of electric transmission lines. 

Dominion operates the nation’s largest natural gas storage system with 942 billion cubic feet of storage capacity and serves retail energy customers in 13 states. For more information about Dominion, visit the company’s Web site at www.dom.com.