THE VIRGINIAN-PILOT

                         THE VIRGINIAN-PILOT
                 Copyright (c) 1994, Landmark Communications, Inc.

DATE: TUESDAY, June 28, 1994                    TAG: 9406280355 
SECTION: BUSINESS                     PAGE: D2    EDITION: FINAL  
SOURCE: By TOM SHEAN, STAFF WRITER 
DATELINE: 940628                                 LENGTH: Medium 

VIRGINIA NATURAL GAS TO BUILD 2 PIPELINES \

{LEAD} Virginia Natural Gas, citing stronger demand in Hampton Roads, said it will spend almost $23 million installing two new pipelines for local distribution of the fuel.

The Norfolk-based utility said it picked up almost 9,300 customers during 1993, bringing its roster of customers to 195,000. Of these, 179,149 are residential customers.

{REST} ``Since 1983, we have added over 63,000 customers to our base, so we're expanding our facilities to meet the strong demand,'' William F. Fritsche Jr., Virginia Natural Gas president and chief executive, said in a prepared statement.

One of the new pipelines will run from a site near Military Highway and Interstate 464 in Chesapeake to a location near the Farmer's Market in Virginia Beach.

The first phase of this construction - installation of two miles of 20-inch pipe in Chesapeake - began last week and will likely be completed in October, the company said.

The second phase - installation of 12 miles of pipe in Chesapeake and Virginia Beach - is expected to be finished in the fall of 1995.

The $7.6 million pipeline will improve the reliability of service to high-growth sections of Chesapeake and Virginia Beach, VNG said.

In addition, the utility said it will begin work next spring on a distribution pipeline between the Kingsmill area near Williamsburg and a site in Newport News. The 20-mile pipeline will cost about $15 million to install and should be completed in the fall of 1995.

The new Peninsula line will connect the company's distribution network to a larger pipeline that brings gas to Hampton Roads from Northern Virginia. by CNB