- Delivery points provide additional
natural gas supply to PSNC Energy, a local distribution company
serving North Carolina residents and businesses
- Proposed route incorporates landowner
considerations and addresses concerns brought forth during the
pre-filing process
- The project is designed to provide
natural gas access to existing, expanding and new markets in
southern Virginia and central North Carolina
- The project has the support of the
Virginia Chamber of Commerce, the North Carolina Chamber of
Commerce, the North Carolina Economic Development Association, and
other organizations
- More than half of the proposed route
(54 percent) is co-located with existing infrastructure
rights-of-way in order to minimize impacts on landowners and the
environment
Mountain Valley Pipeline, LLC, today formally applied to the
Federal Energy Regulatory Commission (FERC) for authorization to
build the MVP Southgate project, a proposed interstate natural gas
transmission pipeline designed to provide reliable, cost-effective
access to natural gas to meet increasing residential and commercial
demand in central North Carolina.
Mountain Valley Pipeline, LLC, will construct and own the
proposed MVP Southgate, which is a joint venture between EQM
Midstream Partners, LP (NYSE: EQM); affiliates of NextEra Energy,
Inc. (NYSE: NEE); Consolidated Edison, Inc. (NYSE: ED); and RGC
Resources, Inc. (NASDAQ: RGCO); WGL Midstream, Inc.; and PSNC
Energy. EQM Midstream Partners will operate the pipeline and own
the largest interest in the joint venture. Mountain Valley
Pipeline, LLC, and PSNC Energy have entered into binding long-term
agreements that make PSNC Energy an anchor shipper for the project,
and Mountain Valley Pipeline, LLC, continues discussions with other
potential customers. MVP Southgate will tie into the Mountain
Valley Pipeline near Chatham, Virginia, and transport supplies of
Marcellus and Utica natural gas to delivery points in Rockingham
and Alamance counties in North Carolina for distribution to PSNC
Energy’s residential and commercial customers. As currently
proposed, the MVP Southgate project is approximately 73 miles long;
pending regulatory approval, construction is anticipated to begin
in the first quarter 2020, with a full in-service date targeted for
the fourth quarter 2020.
Through this certificate application filing, the FERC is being
asked to certify the public convenience and necessity of the MVP
Southgate project. The FERC, together with cooperating agencies,
will conduct a detailed review and evaluation of a broad number of
subjects, including public safety; water resources; air quality;
wildlife, soils, and vegetation; protected species; cultural and
historic resources; sound levels; alternatives; and economic
benefits.
On May 15, 2018, the FERC granted authorization to begin the
pre-filing process for the MVP Southgate project. During the past
six months, the MVP Southgate team has conducted three open houses,
in addition to participating in three scoping meetings hosted by
the FERC, all aimed at encouraging an open dialogue with community
members, landowners, and public agencies in order to receive
comments and feedback on the MVP Southgate project. On Sept. 24,
Mountain Valley Pipeline, LLC, provided responses to scoping
comments in a filing to the FERC.
The certificate application is a collection of information
gathered before and during the FERC pre-filing process. This
comprehensive set of documentation includes extensive research from
environmental, geological, and economic studies conducted by the
MVP Southgate project team and outside experts, as well as
intelligence gathered during discussions with landowners along the
route, local elected officials and others.
The MVP Southgate project team considered a wide range of
alternatives and variations to the proposed route, and made 191
route adjustments in response to feedback collected during the
pre-filing process. The proposed route identified in the
application encompasses these various revisions, which include the
protection of streams, wetlands, and cultural resources, as well as
the avoidance of, or minimization of impacts to, several sensitive
areas. Examples of such adjustments include:
- Reduction in temporary right-of-way
width from 100' to 75' at wetland and waterbody crossings
- Proposal to cross Cascade Creek, Wolf
Island Creek, and Deep Creek via conventional bore based on
recommendations from the U.S. Fish and Wildlife Service
- Reduction in the number of proposed
compressor stations from two to one
"We appreciate the many landowners, elected leaders, officials
at every level of government, and other stakeholders who provided
important feedback that helped us design the proposed route,” said
Diana Charletta, chief operating officer of EQM Midstream Partners,
LP, operator of the proposed pipeline. “We are committed to
building and operating a state-of-the-art pipeline that serves
public demand for clean-burning, affordable, domestic natural
gas.”
The MVP Southgate project’s primary objective is to serve
customers of PSNC Energy, a local distribution company in North
Carolina. The partnership with PSNC Energy is designed to
strengthen the reliability of natural gas service in central North
Carolina. Additionally, other markets along the project area will
have the ability to access the MVP Southgate project, which in turn
could attract manufacturing opportunities to the area. Having a
safe, reliable source of natural gas is important to secure
industry growth and stimulate job creation and spending throughout
the region.
“Over the past decade, PSNC Energy has added more than 100,000
new natural gas customers,” said Rusty Harris, president and chief
operating officer of PSNC Energy. “We are committed to ensuring the
highest levels of service to the homes and businesses that rely on
natural gas for heating, cooking and other uses, and the MVP
Southgate project offers the most efficient and cost-effective way
to enhance reliability and provide the diversity of supply needed
to meet our customers’ needs.”
Gary Salamido, chief operating officer and acting president of
the NC Chamber, said, “The NC Chamber supports the MVP Southgate
project because it will improve access to affordable natural gas
and help strengthen North Carolina’s reputation as a leading place
in the world to do business. Many employers rely on natural gas to
fuel their operations and the construction of the MVP Southgate
project will bolster efforts to attract and retain businesses in
North Carolina.”
Barry DuVal, president of the Virginia Chamber of Commerce, also
endorsed the project, stating, “Time and again we hear from
manufacturers and other large companies that the availability of
natural gas is a critical component in the site selection process.
The Southern Virginia Mega Site at Berry Hill is the commonwealth’s
biggest business park, and the MVP Southgate project’s proximity to
that site offers tremendous long-term economic development
opportunities. The Virginia Chamber fully supports the project and
the potential benefits its construction and operation could
bring.”
From an economic benefits perspective, the MVP Southgate project
is expected to bring significant benefits to Virginia and North
Carolina, and the counties along its route, based on findings from
FTI Consulting, Inc. (FTI), the company that managed and produced
the MVP Southgate project economic benefits report. FTI took a
conservative approach to estimating the state-level impacts related
to the MVP Southgate. The MVP Southgate project estimates:
- Spending $68 million in Virginia and
$113 million in North Carolina on labor, equipment, materials,
acquisition and services
- Employment at the peak of construction
to support 570 jobs in Virginia and 1,130 jobs in North Carolina,
including direct, indirect, and induced jobs
- Annual MVP Southgate ad valorem taxes
for Virginia are estimated at about $1.2 million once the pipeline
is operational, and about $3.4 million in North Carolina once the
project is operational
- State and local tax revenues generated
during pre-construction and construction are an estimated $4.1
million in Virginia and $6.3 million in North Carolina (e.g.,
sales, use, income, property, and other tax categories)
The application and resource reports, along with proposed route
maps, are available on the MVP Southgate website
(www.mvpsouthgate.com); and paper copies will be placed in public
libraries or community buildings located in counties along the
proposed route.
About MVP Southgate
The MVP Southgate is a proposed underground, interstate natural
gas pipeline system that spans approximately 73 miles from southern
Virginia to central North Carolina. The MVP Southgate is subject to
approval and regulatory oversight by the Federal Energy Regulatory
Commission. Mountain Valley Pipeline, LLC, will construct and own
the proposed MVP Southgate, which is a joint venture between EQM
Midstream Partners, LP (NYSE: EQM); affiliates of NextEra Energy,
Inc. (NYSE: NEE); Consolidated Edison, Inc. (NYSE: ED); and RGC
Resources, Inc. (NASDAQ: RGCO); WGL Midstream, Inc.; and PSNC
Energy. The MVP Southgate was designed to transport clean-burning
natural gas from the prolific Marcellus and Utica shale regions to
the growing demand markets in southern Virginia and central North
Carolina. Targeting a full in-service of late 2020, EQM Midstream
Partners, the largest interest owner, will operate the pipeline.
From planning and development, to construction and in-service
operation – the MVP Southgate team is dedicated to the safety of
its communities, employees, and contractors; and to the
preservation and protection of the environment. Visit
www.mvpsouthgate.com.
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 MVP Southgate project and joint venture,
such as the projected length of the MVP Southgate; the MVP
Southgate’s expected interconnections with facilities and
pipelines; the timing of development and construction for the MVP
Southgate; the estimated cost of the MVP Southgate; the expected
in-service date for the MVP Southgate; and the expected economic
benefits of the MVP Southgate. 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 improvement
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,
landowners, 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 facility 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.
Any forward-looking statement speaks only as of the date on
which such statement is made and Mountain Valley Pipeline, LLC does
not intend to correct or update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20181106005984/en/
For Mountain Valley Pipeline:Shawn Day,
804-771-5306shawn@capresults.net
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