Onsite LNG at Gas Power Plants?

Richmond, Virginia-based Dominion Energy, seeking to improve its winter reliability, is planning to go into the liquified natural gas business in the Old Dominion. Dominion Energy Virginia (still technically operating under its original moniker, Virginia Electric and Power Co.) is planning an LNG production, storage, and regasification facility serving two of its large gas-fired power plants located near the state’s southern border with North Carolina.

The utility says the purpose of the project is “to avoid fuel shortages during extreme weather or other supply disruptions or constraints.” Virginia is part of the PJM competitive wholesale electric market, which came near to collapse over the Christmas holiday period last year – known as Winter Storm Elliott – largely because of failures among the pipeline companies that serve electric generating units. Dominion relies on gas for about 40% of its electric generation.

Dominion plans to add onsite LNG storage to serve two large neighboring combined-cycle plants in Greensburg and Brunswick counties. The Greensville plant has a generating capacity of 1,588 MW and the Brunswick plant’s capacity is 1,358 MW. Transco currently serves the two plants, with a 4.3 mile lateral pipeline to the Greensville plant from its interstate pipeline and a 7.3 mile lateral to the Brunswick plant. Transco owns the laterals.

more…