Full In-Service Targeted for Late 2020;
Estimated Cost of $5.3 - $5.5 Billion
Mountain Valley Pipeline, LLC (Mountain Valley), today,
announced total project work will be approximately 90% complete by
year-end 2019, with an adjusted in-service date of late 2020 and
revised total cost estimate of $5.3 - $5.5 billion.
Notwithstanding various legal and regulatory challenges during
2019, the Mountain Valley Pipeline (MVP) project team was able to
make significant construction progress. MVP's three compressor
stations and three certificated interconnects are now 100%
complete; approximately 80% of the pipeline work is complete, which
includes 264 miles of pipe welded and in place; and approximately
50% of the right-of-way has been fully restored.
"We are pleased with our progress during the past 10 months and,
despite the few remaining permitting issues, we remain confident in
the regulatory process and look forward to the successful
in-service of this important infrastructure project," said Diana
Charletta, president and chief operating officer, EQM Midstream
Partners, LP, operator of MVP. "We have encountered unforeseen
development challenges; however, we continue to make progress
towards ultimate completion. While the temporary setbacks have
caused schedule delays and cost overages, completion of the MVP
project is critical to serving the growing demand for domestic
natural gas in the mid-Atlantic and Southeast regions of the United
States; and we appreciate the oversight of the various state and
federal agencies that have helped guide our construction
activities."
On October 15, the Federal Energy Regulatory Commission (FERC)
issued a project-wide order halting forward-construction progress
in response to the U.S. Fourth Circuit Court of Appeals order
granting a stay of MVP's Biological Opinion and Incidental Take
Statement issued by the U.S. Fish and Wildlife Service in November
2017. Much of MVP's forward-construction work was already deferred
in accordance with MVP's August 2019 voluntary suspension or had
been largely winding down for the winter season. The FERC's order
directs MVP to focus on restoration and stabilization activities to
protect the environment, which has been a primary focus of the MVP
team in its preparation for winter, including enhancing erosion and
sediment controls and continuing with restoration work.
MVP's late 2020 in-service date and cost adjustment reflects
changes to the previously planned construction schedule. The
project's voluntary suspension of forward-construction and
inability to work in streams and wetlands prevented Mountain Valley
from fully completing portions of the route and shifted more
mainline work into 2020. This resequencing of work has created
carrying costs and caused the use of additional time and crews
needed to safely maintain the entire 303-mile route over the
winter, as opposed to focusing on maintaining only unrestored
sections of the route had construction been fully completed as
planned during 2019.
Activities related to MVP’s construction have delivered a boost
to local economies by generating additional revenue and creating
jobs. And in support of communities along the route, MVP
established a local giving program in mid-2017 that provides
sponsorships and donations to charitable organizations and
community events that focus on STEAM education (science,
technology, engineering, arts, and mathematics); environmental
stewardship; civic and community development; and arts and culture.
During the past two years, MVP has donated nearly $600,000 to local
organizations and community associations along its 303-mile
route.
Since the onset of the project more than four years ago,
Mountain Valley has retained five key stakeholder priorities:
design a route with the least overall impact to landowners and
communities; minimize impacts to sensitive species and preserve
cultural, historical, and environmental resources; construct the
pipeline in the safest manner possible; maintain high levels of
environmental protection at all times; and ensure the safety of
MVP’s landowners, communities, inspectors, employees, and
contractors.
The MVP project team 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 EQM Midstream
Partners, LP; NextEra Capital Holdings, Inc.; Con Edison
Transmission, Inc.; WGL Midstream, Inc.; 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 late 2020, EQM
Midstream Partners, LP (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 and targeted in-service date of the MVP; the progress on
construction of the MVP’s facilities and pipelines; the expected
impact of litigation and regulatory proceedings on the project; and
MVP’s efforts related to safety and environmental protection. 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 and
pipelines 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,
adverse weather conditions 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.
Source: Equitrans Midstream Corporation
View source
version on businesswire.com: https://www.businesswire.com/news/home/20191022005281/en/
Mountain Valley Pipeline media inquiries: Natalie Cox
ncox@equitransmidstream.com
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