The plans call for Piedmont to construct 38-miles of 20-inch pipeline along with additional compression facilities to provide natural gas delivery service to the plant by July, 2012.

Piedmont's investment in the pipeline and compression facilities is estimated at $85 million and is supported by a long-term service agreement with Progress Energy Carolinas.

Progress Energy Carolinas had announced its plan for the new power plant on August 18, 2009. The plan includes retiring three existing coal-fired units at the adjacent HF Lee Plant in Wayne County once the new gas-fueled units come online.

Progress Energy Carolinas expects the new combined-cycle natural gas plant to increase the amount of electricity produced at the site while reducing overall emission rates for CO2 by an estimated 60%, mercury rates by 100%, sulfur-dioxides by nearly 100% and nitrogen oxides by more than 95%.

Thomas Skains, chairman, president and CEO of Piedmont Natural Gas, said: "We're excited about this opportunity to work with Progress to deliver clean and efficient natural gas to their new power generation facility.

"In addition to the environmental benefits associated with using natural gas at this new plant, the construction of the natural gas pipeline for this project will also add to our natural gas infrastructure in the eastern part of North Carolina and enhance future opportunities for additional economic growth and development."

A service of YellowBrix, Inc.