New salt plant announced in Pennsylvania
Dominion Resources, earlier this week, announced the company will build a new $750 million "storage factory" in Tioga, PA, near the NY state line in central Pennsylvania. If the Federal Energy Regulatory Commission gives its okay, the Richmond, VA-based company will store 50 billion cubic feet of natural gas from its pipeline network in two new salt caverns which it will begin in 2009. The solution-mined salt will be processed and sold as dry salt.
The model is that of Duke Energy's plant in Saltville, VA. Gas companies value salt cavern storage close to their customers for its security, cost-effectiveness and operational flexibility lowering consumer gas prices.
Dominion has set up a website for the project.
Local news coverage featured explanations from local Republican state Rep Matthew E. Baker (Wellsboro) who termed the twin projects "tow of the largest economic development ventures that have ever come to Tioga County" and noted "many jobs" would be created -- 75 projected in the "stoage factory" and 200 construction jobs during the first two years of the project.
Dominion chairman, president and CEO Thomas F. Farrell II described the project as an "exciting growth opportunity" for the company:
“The future of natural gas storage is here. ... Salt cavern storage is common in the producing area, but we are building this infrastructure close to the market area, where its advantages — high-deliverability, flexibility and expandability — will bring needed supplies to the market quickly, especially during peak weather conditions."
Two of a projected 18 underground salt cavities will be operational beginning in 2014.
