Dominion Picks W.Va. Site for Natural Gas Plant

The Associated Press
12 January 2011

RICHMOND, Va. -- Virginia energy company Dominion said Wednesday it has selected a 56-acre site in West Virginia's Northern Panhandle for the construction of a plant to process natural gas from hundreds of producers tapping the rich Marcellus shale deposit.

Dominion will likely invest hundreds of millions of dollars in the property in Natrium, W.Va., which is owned by PPG Industries, Dominion spokesman Dan Donovan said.

Dominion did not disclose terms of its option on the land with PPG.

The property will be used to process natural gas and separate natural gas liquids. It will be operated by the Richmond company's natural gas pipeline and storage subsidiary, Dominion Transmission.

Engineering design and project planning are underway for the plant, which ultimately will employ 40 to 50 people, Donovan said.

The plant will process natural gas from Marcellus Shale, a vast underground formation that has created a gold rush among energy companies seeking to tap the rich vein of natural gas contained in the rock.

The process used to extract the gas, called hydraulic fracturing, also has stirred controversy because of the huge amounts of wastewater it produces.

The Natrium site is within 10 miles of Dominion's TL-404 pipeline, an existing transmission line in Ohio and West Virginia that Dominion plans to convert to a wet gas service line. The site also is close to rail and barging services.

In a statement issued by Dominion, acting West Virginia Gov. Earl Ray Tomblin welcomed the announcement and said the Marcellus Shale "holds great potential for our economy while meeting the growing energy needs of our state and our nation."

PPG's Natrium plant produces chlorine, calcium and other chemicals used to purify drinking water and in the production of pharmaceuticals. It employs 530 people.

Dominion is one of the nation's largest producers and transporters of energy.