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Atlantic Coast pipeline costs rise to as much as $6.5B, developer Duke says

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Atlantic Coast pipeline costs rise to as much as $6.5B, developer Duke says

Construction cost estimates for the 1.5-Bcf/d Atlantic Coast natural gas pipeline project soared by about $1 billion due to permitting delays and conditions imposed on the project, Duke Energy Corp. said in its 2017 annual report.

The project's pipeline development costs are now expected to be between $6 billion and $6.5 billion, from a previous range of $5 billion to $5.5 billion, excluding financing costs, the company reported. As one of the project developers, Duke's share in the costs is 47%.

Besides the project costs, the setbacks are also expected to affect construction activities and scheduling. "Project construction activities, schedule and final costs are still subject to uncertainty due to potential additional permitting delays, construction productivity and other conditions and risks," the company said in the SEC filing.

Duke still expects an in-service date of late 2019 for Atlantic Coast, Chairman, President and CEO Lynn Good said during the company's Feb. 20 earnings call. The project has received approvals from the Federal Energy Regulatory Commission, the North Carolina Department of Environmental Quality and the U.S. Army Corps of Engineers. It has yet to obtain final permits from Virginia.

The 600-mile pipeline project would deliver Appalachian gas supplies to mid-Atlantic and Southeast markets and is a joint venture of Duke, Dominion Energy Inc. and Southern Co.'s Southern Co. Gas.