Continues to Target a Full In-Service for Late
2019
Mountain Valley Pipeline, LLC, today, announced that it has
increased its overall project cost estimate to $4.6 billion.
Approximately half of the cost increase is due to extended periods
of work stoppage during August that triggered ongoing contractual
charges and schedule changes – with the balance relating to
extraordinary rainfall events that continued through the summer,
recent hurricane preparedness actions that interrupted
full-construction activities, and certain unanticipated
construction cost overruns.
The Federal Energy Regulatory Commission cleared MVP to restart
full construction on August 29, 2018, with exception of
approximately 25 miles of the route. Based on the current
construction plan, MVP expects to complete more than 50% of the
pipeline by year-end. The halting of construction due to court
challenges from environmental opponents have caused lengthy project
delays, material cost increases, and burdens for local communities
and agencies; and have also impeded the delivery of low-cost energy
resources to consumers and other end-user markets.
Along with the work stoppage, significant costs have been
incurred to enhance and repair erosion and sediment control devices
due to unprecedented rainfall in West Virginia and Virginia during
the past several months.
With ongoing evaluation of its construction plan, MVP continues
to target a full in-service during the fourth quarter 2019. MVP is
committed to the safety of its communities, to the preservation and
protection of the environment, and to the continued responsible
construction of this important natural gas infrastructure project
that will serve homes and business in the mid-Atlantic and
Southeast United States.
About Mountain Valley Pipeline
The Mountain Valley Pipeline (MVP) is a proposed underground,
interstate natural gas pipeline system that spans approximately 303
miles from northwestern West Virginia to southern Virginia. Subject
to approval and regulatory oversight by the Federal Energy
Regulatory Commission, the MVP will be constructed and owned by
Mountain Valley Pipeline, LLC – a joint venture of EQT Midstream
Partners, LP; NextEra US Gas Assets, LLC; Con Edison
Transmission, Inc.; WGL Midstream; and RGC Midstream, LLC. The MVP
was designed to transport clean-burning natural gas from the
prolific Marcellus and Utica shale regions to the growing demand
markets in the Mid-Atlantic and Southeast areas of the United
States. Targeting a full in-service during the fourth quarter 2019,
EQT Midstream Partners (NYSE: EQM), primary interest owner, will
operate the pipeline. From planning and development, to
construction and in-service operation – MVP is dedicated to the
safety of its communities, employees, and contractors; and to the
preservation and protection of the environment.
Visit www.mountainvalleypipeline.info
Cautionary Statements
Disclosures in this news release contain certain forward-looking
statements that do not relate strictly to historical or current
facts and are forward-looking. Without limiting the generality of
the foregoing, forward-looking statements contained in this news
release specifically include the expectations of plans, strategies,
objectives and growth, and anticipated financial and operational
performance of Mountain Valley Pipeline, LLC, including guidance
regarding the proposed Mountain Valley Pipeline (MVP); the expected
cost of the MVP; MVP’s efforts related to safety and environmental
protection; and the timing of development, construction and
in-service for the MVP. The forward-looking statements included in
this news release are subject to risks and uncertainties that could
cause actual results to differ materially from projected results.
Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
Mountain Valley Pipeline, LLC has based these forward-looking
statements on current expectations and assumptions about future
events. While Mountain Valley Pipeline, LLC considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory,
and other risks and uncertainties, most of which are difficult to
predict and are beyond its control. The risks and uncertainties
that may affect the operations, performance, and results of
Mountain Valley Pipeline, LLC and forward-looking statements
include, but are not limited to:
The business, financial condition, results of operations and
prospects could suffer if Mountain Valley Pipeline, LLC does not
proceed with projects under development or is unable to complete
the construction of, or capital improvements to, its facilities on
schedule or within budget.
The ability to complete construction of, and capital
improvements to, facilities on schedule and within budget may be
adversely affected by escalating costs for materials and labor and
regulatory compliance, inability to obtain or renew necessary
licenses, rights-of-way, permits or other approvals on acceptable
terms or on schedule, disputes involving contractors, labor
organizations, land owners, governmental entities, environmental
groups, Native American and aboriginal groups, and other third
parties, negative publicity, transmission interconnection issues,
and other factors. If any development project or construction or
capital improvement project is not completed, is delayed or is
subject to cost overruns, certain associated costs may not be
approved for recovery or recoverable through regulatory mechanisms
that may otherwise be available, and Mountain Valley Pipeline, LLC
could become obligated to make delay or termination payments or
become obligated for other damages under contracts, could
experience the loss of tax credits or tax incentives, or delayed or
diminished returns, and could be required to write-off all or a
portion of its investment in the project. Any of these events could
have a material adverse effect on Mountain Valley Pipeline, LLC’s
business, financial condition, results of operations and prospects.
Mountain Valley Pipeline, LLC may face risks related to project
siting, financing, construction, permitting, governmental approvals
and the negotiation of project development agreements that may
impede its development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for
licenses and permits from various local, state, federal and other
regulatory authorities and abide by their respective conditions.
Should Mountain Valley Pipeline, LLC be unsuccessful in obtaining
necessary licenses or permits on acceptable terms, should there be
a delay in obtaining or renewing necessary licenses or permits or
should regulatory authorities initiate any associated
investigations or enforcement actions or impose related penalties
or disallowances on Mountain Valley Pipeline, LLC, Mountain Valley
Pipeline, LLC’s business, financial condition, results of
operations and prospects could be materially adversely affected.
Any failure to negotiate successful project development agreements
for new facilities with third parties could have similar
results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities
and other facilities are subject to many operational risks.
Operational risks could result in, among other things, lost
revenues due to prolonged outages, increased expenses due to
monetary penalties or fines for compliance failures, liability to
third parties for property and personal injury damage, a failure to
perform under applicable sales agreements and associated loss of
revenues from terminated agreements or liability for liquidated
damages under continuing agreements. The consequences of these
risks could have a material adverse effect on Mountain Valley
Pipeline, LLC’s business, financial condition, results of
operations and prospects.
Uncertainties and risks inherent in operating and maintaining
Mountain Valley Pipeline, LLC's facilities include, but are not
limited to, risks associated with facility start-up operations,
such as whether the facilities will achieve projected operating
performance on schedule and otherwise as planned.
Mountain Valley Pipeline, LLC’s business, financial condition,
results of operations and prospects can be materially adversely
affected by weather conditions, including, but not limited to, the
impact of severe weather.
Threats of terrorism and catastrophic events that could result
from terrorism, cyber-attacks, or individuals and/or groups
attempting to disrupt Mountain Valley Pipeline, LLC’s business, or
the businesses of third parties, may materially adversely affect
Mountain Valley Pipeline, LLC’s business, financial condition,
results of operations and prospects.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180924005986/en/
Mountain Valley Pipeline media inquiries:Natalie Cox,
412-395-3941Corporate Director,
Communicationsncox@eqt.comwww.mountainvalleypipeline.info
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