Under the agreement, Piedmont will construct the pipeline as well as additional compression facilities to service the plant by July 2012 at an estimated cost of $US85 million.

Progress Energy Carolinas announced its plan to retire three existing coal-fired units to make way for its new combined-cycle natural gas plant in August 2009.

Piedmont Natural Gas Chief Executive Officer Thomas Skains said “In addition to the environmental benefits associated with using natural gas at this new plant, the construction of the pipeline for this project will also add to our natural gas infrastructure in the eastern part of North Carolina.”