Rising Energy Demands Push for Pipeline Expansion
Virginia’s escalating energy needs, fueled by a booming data center industry, have placed significant strain on the state’s natural gas infrastructure. A report from the Joint Legislative Audit and Review Commission (JLARC) underscores the urgency for expanding pipeline capacity to meet these demands. However, such developments come with logistical and environmental hurdles, sparking widespread debate.
Williams Companies has taken proactive steps to address these challenges, filing an application in October for its Southeast Supply Enhancement Project (SSEP). This initiative includes a 55-mile pipeline addition to its extensive 10,000-mile Transco Pipeline, which stretches from Texas to New York. Meanwhile, the company’s Commonwealth Energy Connector Project is already under construction in Southside Virginia, aimed at delivering natural gas to the Hampton Roads region. Other projects, such as the Southgate extension of the Mountain Valley Pipeline, are also advancing, with permit reviews currently underway.
Despite these efforts, environmental groups remain critical. Organizations like Appalachian Voices highlight the ecological risks, including potential damage to waterways and the continued reliance on fossil fuels, which contribute to climate change. The SSEP plans to expand infrastructure in five states, including Virginia and North Carolina, with an operational goal of late 2027.
Controversy Surrounding New Developments
While pipeline expansions aim to meet growing energy demands, they face regulatory scrutiny and community opposition. The Southgate project, which involves a 31-mile pipeline extension, recently revised its scope to eliminate a controversial compressor station and increase pipeline diameter. This adjustment has raised questions about whether the Virginia Department of Environmental Quality (DEQ) will waive federal water permit requirements under the Clean Water Act.
Environmental advocates argue that the proximity of the SSEP and Southgate projects could amplify ecological and community impacts. “The cumulative impacts from two major construction projects is one reason to give Southgate more scrutiny than last time,” said Jessica Sims of Appalachian Voices. DEQ officials confirmed they have not yet received formal plans for the Southgate project, but consultations with regulatory agencies are ongoing.
Williams Companies and other developers emphasize their commitment to safety and environmental standards. They argue that expanding pipeline infrastructure is essential for meeting the region’s energy needs while minimizing disruptions to landowners and ecosystems.
Data Centers Add Pressure to Natural Gas Supply
Adding to the complexity, Virginia’s data center boom is driving a parallel demand for on-site power generation. The JLARC report identifies natural gas as the most feasible option for these facilities, particularly in Southwest Virginia, where pipeline infrastructure is already under strain.
In Pittsylvania County, Balico’s ambitious plans for a 2,300-acre data center campus, including a 3,500-megawatt natural gas plant, met fierce resistance from the community. The developer later scaled back its proposal, reducing the project size to 760 acres and adjusting its water usage plans. The revised application includes a commitment from Mountain Valley Pipeline owner EQT to supply the necessary natural gas.
While some localities, like the town of Hurt, have expressed support for the project, agreeing to provide water through a new plant, environmental concerns linger. Balico’s proposal is set for review next year, marking a critical juncture in Virginia’s efforts to balance energy demands with environmental stewardship.
