Evansville-based Vectren Corp. (NYSE: VVC) is set to start construction this week on a more than $5.5 million natural gas project in southeast Indiana. The utility says the pipeline will be located under the upcoming I-265 expansion and will improve service reliability in three counties. November 5, 2013

News Release

CLARKSVILLE, Ind. – In an effort to provide added reliability for its nearly 50,000 natural gas customers in the southeastern Indiana region, Vectren Energy Delivery of Indiana (Vectren) begins work this week to install a new 16-inch natural gas transmission pipeline that is about 1.4 miles in length. Due to the impending expansion of I-265 in Clark County, Vectren is required to relocate a segment of the existing 10-inch transmission pipeline. At the same time that relocation project is occurring, Vectren will install a new 16-inch pipeline that will essentially run underneath the forthcoming interstate as well as extend this 16-inch line beyond the interstate so the area is no longer supplied by a single-source pipeline. As a result, the region will now be served by two pipelines, as the new transmission line will be installed parallel to the existing, avoiding the need to keep the existing line in service while it is being relocated in preparation for interstate construction.

“The addition of a second transmission pipeline provides added reliability to an area that will undoubtedly see more commercial and residential growth as the interstate bypass project continues. Furthermore, this installation project will greatly enhance the ability to maintain the safety of this pipeline, ensure we can comply with federal inspection guidelines and eliminates the need to disrupt daily operations within these communities,” said Bob Rogge, Vectren's Southeast division manager of field operations. “Upgrading to a dual-pipeline arrangement now not only makes it more accessible, but avoids the enhanced expense should work need to be done on the transmission line after the new interstate is in place.”

Benefits of the $5.7 million system upgrade will take the excess system capacity from 42 percent to 98 percent post improvement. Integrity assessments, routine maintenance and safety inspections will be able to be conducted without disruption of service to customers. Those property owners who may be impacted by this installation project have been notified, and direct communication will occur with them as the process moves forward.

The pipeline addition will enhance service for Vectren customers in Clark, Floyd and Jefferson counties. Pipeline construction contractor, Troy Construction, has been awarded the work, which is forecasted to be completed in January.

Upon project completion, two transmission lines will run from Vectren’s Indiana River Header station to the Utica town border (TB) regulator station. The light blue line is the area in which the existing 10-inch pipeline will be relocated to allow for the interstate bypass project, and the yellow line indicates the area where the new 16-inch pipeline will be installed.

Source: Vectren Corp.

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