Dominion Energy Secures Approval for LNG Storage Facility to Bolster Reliability at Brunswick and Greensville Power Stations

Another win for the world's safest, cleanest, and most reliable hydrocarbons.

Mar 02, 2025

On February 24, 2025, the Virginia State Corporation Commission (SCC) granted Virginia Electric and Power Company (Dominion Energy) approval to amend the certificates of public convenience and necessity (CPCNs) for its Brunswick and Greensville County Power Stations. The amendment allows Dominion to construct and operate a liquified natural gas (LNG) storage, production, and regasification facility adjacent to the Greensville station, aimed at enhancing the reliability of these critical natural gas-fired plants.

The Brunswick (1,358 MW) and Greensville (1,588 MW) stations, operational since 2016 and 2018 respectively, collectively power over 700,000 homes and account for roughly a quarter of Dominion’s generation capacity. The proposed LNG Storage Facility, with a capacity of 2 billion cubic feet, 15 million standard cubic feet per day (mmscfd) of liquefaction, and 500 mmscfd of regasification, will serve as a backup fuel source. It is designed to sustain full-load operations at both stations for four days--or one station for eight days—during disruptions like severe weather, cyberattacks, or pipeline constraints. The facility will tap into the existing Transcontinental Gas Pipe Line (Transco) system, avoiding the need for new pipelines and minimizing environmental impact.

The SCC’s decision followed a thorough review process, including public hearings and input from stakeholders like the Division of Consumer Counsel, Appalachian Voices, and the Virginia Department of Environmental Quality (DEQ). The Commission found no material adverse impact on electric service reliability, deeming the project necessary for public convenience and not contrary to the public interest. The facility’s estimated $547 million capital cost will be recovered through a new rate adjustment clause, Rider GEN, with an anticipated annual bill impact of $6.50 for the average residential customer over its lifespan.

Key to the approval was Dominion’s argument that the LNG facility addresses a critical reliability gap--Brunswick and Greensville are currently the only plants in its fleet without backup fuel sources. The project promises to mitigate risks from single-point fuel supply failures, potentially increasing capacity factors by up to 400 MW and yielding $52 million in annual capacity revenues based on 2028 prices, which could offset costs for ratepayers.

Safety considerations were rigorously addressed. Dominion committed to adhering to DEQ recommendations and federal pipeline safety standards (e.g., 49 C.F.R. Parts 191 and 193). The SCC also clarified that the facility’s backup generators, intended for emergency use during outages, do not fall under Code § 56-585.1 A 5 c as “generating facilities,” as they will not supply electricity for retail sale. This distinction avoided potential conflicts with Virginia’s carbon-free generation mandates.

Set to commence operations by Q4 2027, the LNG Storage Facility represents a pragmatic step toward grid resilience amid rising load growth and increasing extreme weather risks. It highlights the importance of fuel diversity in maintaining a stable power supply as utilities navigate the complexities of reliability, cost, and environmental stewardship.

The SCC’s full order (Case No. PUR-2024-00096) provides detailed insights into the regulatory and technical considerations behind this approval.

Nathan’s Newsletter

Discussion about this post