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Dominion Resources CEO Thomas Farrell on the economic impact of exporting natural gas.
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-- plummeting natural gas prices let's get to that are changing the face of energy in the US.
And sparking a very loud and massive debate over how to best put the cheap energy we have here to use.
Joining me now -- Fox Business exclusive Dominion Resources chairman CEO and president Tom -- he's in Richmond Virginia.
Up mr.
-- thrilled to have you on the program because.
I find this company extraordinarily interesting.
-- at what some people might believe to be just a simple utility in -- you are very complicated.
Hydro renewable natural gas nuclear it's it's very very impressive to look at all you're doing but.
The number swung to a loss most recently but ex items you did quite well.
The question being you plan to sell about three coal plants and I looked -- -- -- avoid credit it are you getting out of the coal business is coal over for the time being.
Can you tell me how to read into that.
Sure let's thank you or perhaps it's good to be with you again we are selling a couple coal plants one in the midwest.
Some multiple unit -- -- in Massachusetts.
It's in our merchant business and we were looking across what are prospects are and those plants are great plants there in full compliance with all of -- -- regulations.
But they just don't fit.
Well with our our strategic plan in our balance sheets so we thought -- be better off with.
Other owners we will continue to have coal in our utility in Virginia although we are shutting some plants there too because of environmental regulation.
OK so so mean you basically -- your strategic plan will eventually perhaps have much less coal involved in it and simply because it's gotten what too tough to do business with the environmental issues surrounding it or.
You figure you might be able to make more money with a cleaner energy -- a -- opportunity.
Well -- the plants we will have retain in Virginia are big plants there are all -- in full compliance with all environmental regulations so they're in good shape.
That's we're building new plants for building two big very large gas plants in Virginia we're looking at -- in particular here.
We're expanding our pipeline business we're looking at an export facility former LNG.
So were were -- going down that valujet.
LNG exports are not inexpensive their a couple of billion dollars you've gotten approval to start exporting natural gas as I understand -- The Department of Energy do you -- The contracts lined up on the other and to whom you would be exporting because as I understand it.
The deal week and then fast track a company that can prove we've got the contracts put us at at least closer to the front of the line.
We have there's two permits stood export one is for free trade agreement countries we have that we have that permit.
The need non free trade agreement were still working on that there's only one company that has that permits so far.
Worth we're should be second or third third probably in line for that consideration.
And we're working on the contracts.
To -- down the exporting we will not.
Take ownership of the -- we walls provide a service to exporters -- body gas.
Will deliver to our facility and -- and we'll freeze it.
-- it put it in the tankers for them have been offered goes it.
It all sounds great but some people don't think it's great some American companies don't think it's great it's no surprise of bringing up out of -- livers of Dow Chemical he's been on the show.
And and I quote what he said that and natural -- is is very much -- national resource and he said government policies could.
They've got to avoid artificially accelerating demand through this policy.
That he also believes that that you know what it.
If we if we put all of this into motion -- could be catastrophic for shops in the country because.
He says natural gas will be so expensive eventually that his company which uses it won't be able to buy it at at the cheap price.
Well I think there's quite a bit a hyperbole in that statement.
And the if you look at the Department of Energy hired to consultants to -- -- study the impacts on the US economy.
From exporting gas and they found that would be a net benefit.
To export the gas.
Two -- and for multiple sites and all that said I think the market will eventually determine how much of this is actually done.
And it will be far less than the amount -- -- permits that are being sought.
-- -- one mean when he uses the word catastrophic him and you say hyperbole obviously two different perspectives but we are watching that we're watching your nuclear plants.
At -- room where we're really happy to have you -- and watch the story is well for our investor audience thank you get to see you.
Thank you lists Tom -- is Dominion Resources chairman CEO president and the stock is up about 8% over the past year cut a dividend of three point 9%.
Which is attractive to a lot of investors closing bell.
