Virginia regulators hit pause on gas compressor plan near Chesapeake neighborhood

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Example photo of a gas compressor project, similar to what Virginia Natural Gas has proposed near a Chesapeake neighborhood. (Photo courtesy Virginia Natural Gas)

The State Corporation Commission is taking extra time to sift through public feedback before deciding whether Virginia Natural Gas (VNG) can move forward with a $90 million compressor station planned near a historically Black neighborhood in Chesapeake.

The project is designed to prevent pressure drops in gas lines during periods of peak demand, typically on the coldest winter days. The proposed two-story, warehouse-style facility would use an electric motor to push additional gas into service areas farther from the pipelines. No new pipelines would be required, and the facility would sit on existing VNG property on Bainbridge Boulevard and South Military Highway.

“We continue to add 1000s of customers each year across our footprint. That means more demand, more gas being drawn off of the system. We have to make sure that we have the appropriate infrastructure in place to keep it reliable,” said Ken Yagelski, the company’s gas supply director. 

At a mid-August SCC hearing, residents and advocates raised concerns about expanding fossil fuel infrastructure, the risk of pipeline leaks, and the rezoning of nearby residential land for industrial use. That rezoning, which drew particular frustration, required two separate Chesapeake City Council votes to pass.

“They are trying to put this project next to homes of a Black community and a poor community, and this is a region that is already vulnerable to climate change,” said Zander Pellegrino, Virginia field manager for Chesapeake Climate Action Network. “Residents are concerned about what their future holds and locking us into more fossil fuel production cannot be the solution right now.”

The property has long been within Virginia Natural Gas’s fenceline, used for more than 60 years despite being zoned residential. Company officials argue that relocating the compressor could require building new pipelines, which neighbors also oppose.

“It was a property we were already utilizing. I think they’re concerned about the prospects of an industrial facility that’s in the region and again. A lot of that angst, I think, might be a little bit misplaced, because of their misunderstanding of what the facility is,” Yagelski said.

The Chesapeake Climate Action Network, which has been heavily involved in the community, argued the project would primarily benefit corporate customers seeking guaranteed supply. Smurfit Westrock, a paper manufacturer, is listed in the SCC filing as requesting higher volumes of gas. Pellegrino said it is unfair for residents to shoulder the cost of infrastructure built for large industrial users. 

VNG says the facility will have no emissions since the motor is electric and does not burn gas. The compressor is expected to operate only about 20 days a year. But residents noted at the hearing that the site’s existing propane plant and flare are slated for retirement in 2026 —  and they don’t want new industrial activity replacing it. 

“It’s not just about the total threshold that this project adds. It’s about the cumulative impact that this community is facing,” Pellegrino said.

The SCC will compile a report on the public comments. VNG will have two weeks to respond before regulators issue a final decision on whether the project can proceed.

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