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Released April 03, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--The final weeks of March brought some news on two pipeline projects in the U.S., one a crude oil pipeline in the Great Lakes region and the other for natural gas in Appalachia.
In Michigan, the U.S. Army Corps of Engineers said it needs more time to study public comments regarding the proposed construction for Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) Line 5 crude oil pipeline under the Straits of Mackinac between Michigan's Upper and Lower peninsulas. Elsewhere, a federal appeals court ruled that Virginia's Department of Environmental Quality conducted a legally adequate review before issuing a permit allowing Equitrans Midstream's (NYSE:ETRN) (Pittsburgh, Pennsylvania) Mountain Valley natural gas pipeline to cross the state's streams and wetlands.
Line 5 Tunnel
Enbridge has been on shaky ground with Michigan since 2010, when a pipeline operated by the company spilled 21,000 barrels of heavy crude oil into the Kalamazoo River. Cleanup took five years, according to news media. The spill prompted concerns about the portion of Enbridge's aging Line 5 pipeline running on the floor of the Straits of Mackinac, between lakes Michigan and Huron and connecting Michigan's two peninsulas. Out of these concerns, Enbridge proposed constructing a tunnel to house the pipeline under the bedrock of the water body.
Enbridge has said that Line 5 can operate safely on the floor of the Mackinac Straits until the tunnel provides new housing for the pipeline. But this hasn't been good enough for Michigan's legislators. In November 2020, Governor Gretchen Whitmer (D) notified Enbridge that it must stop operating the pipeline within 180 days due the environmental concerns. Enbridge continues to operate the line in defiance of the order.
While Enbridge was perhaps hoping that construction of the tunnel would ease environmental concerns about a potential spill in the Great Lakes, the project has been delayed by at least another year and a half, as the U.S. Army Corps of Engineers says it needs that much time to review public comments on the project and assess its environmental impact. The Corps originally planned to publish the draft environmental impact statement in late 2023 but has now pushed that back to spring 2025.
"While we are supportive of a thorough, comprehensive and carefully considered permitting process that ensures adequate opportunity for review and comment, we are disappointed with the extended timeline for a project of this scope," Enbridge said in a press release. Plans for the project were originally submitted to the Corps of Engineers in 2020.
Subscribers to Industrial Info's Global Market Intelligence Pipeline Project Database can learn more by viewing the project report.
Mountain Valley Pipeline
Equitrans' Mountain Valley Pipeline (MVP) spans 303 miles and will carry natural gas from northwestern West Virginia to southern Virginia. Throughout the life of project, the pipeline has faced multiple delays and an increasingly higher price tag, mostly due to court challenges to environmental permitting.
The latest news, positive for the pipeline and Equitrans, stems from a lawsuit filed in 2021 by environmental groups led by the Sierra Club against the Virginia State Water Board. The groups claimed the agency had not considered alternative water crossings or verified that the proposed pipeline route was the least environmentally damaging alternative.
The 4th U.S. Circuit Court of Appeals, which has ruled unfavorably against the pipeline in the past, found that because Virginia's "decision to grant MVP's application was neither arbitrary nor capricious, we deny the petition for review." The court found that Virginia regulators had done an extensive review before certifying construction of the pipeline.
The same appeals court has yet to make a ruling on a similar challenge regarding water crossings in West Virginia, also led by the Sierra Club. The Army Corps of Engineers needs both the Virginia and West Virginia approvals to be validated to move forward with MVP's application for a water discharge permit involving dredged and fill materials.
Equitrans' most recent update on the progress of the project stated the pipeline was 94% complete.
Subscribers can click here for related project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
In Michigan, the U.S. Army Corps of Engineers said it needs more time to study public comments regarding the proposed construction for Enbridge Incorporated's (NYSE:ENB) (Calgary, Alberta) Line 5 crude oil pipeline under the Straits of Mackinac between Michigan's Upper and Lower peninsulas. Elsewhere, a federal appeals court ruled that Virginia's Department of Environmental Quality conducted a legally adequate review before issuing a permit allowing Equitrans Midstream's (NYSE:ETRN) (Pittsburgh, Pennsylvania) Mountain Valley natural gas pipeline to cross the state's streams and wetlands.
Line 5 Tunnel
Enbridge has been on shaky ground with Michigan since 2010, when a pipeline operated by the company spilled 21,000 barrels of heavy crude oil into the Kalamazoo River. Cleanup took five years, according to news media. The spill prompted concerns about the portion of Enbridge's aging Line 5 pipeline running on the floor of the Straits of Mackinac, between lakes Michigan and Huron and connecting Michigan's two peninsulas. Out of these concerns, Enbridge proposed constructing a tunnel to house the pipeline under the bedrock of the water body.
Enbridge has said that Line 5 can operate safely on the floor of the Mackinac Straits until the tunnel provides new housing for the pipeline. But this hasn't been good enough for Michigan's legislators. In November 2020, Governor Gretchen Whitmer (D) notified Enbridge that it must stop operating the pipeline within 180 days due the environmental concerns. Enbridge continues to operate the line in defiance of the order.
While Enbridge was perhaps hoping that construction of the tunnel would ease environmental concerns about a potential spill in the Great Lakes, the project has been delayed by at least another year and a half, as the U.S. Army Corps of Engineers says it needs that much time to review public comments on the project and assess its environmental impact. The Corps originally planned to publish the draft environmental impact statement in late 2023 but has now pushed that back to spring 2025.
"While we are supportive of a thorough, comprehensive and carefully considered permitting process that ensures adequate opportunity for review and comment, we are disappointed with the extended timeline for a project of this scope," Enbridge said in a press release. Plans for the project were originally submitted to the Corps of Engineers in 2020.
Subscribers to Industrial Info's Global Market Intelligence Pipeline Project Database can learn more by viewing the project report.
Mountain Valley Pipeline
Equitrans' Mountain Valley Pipeline (MVP) spans 303 miles and will carry natural gas from northwestern West Virginia to southern Virginia. Throughout the life of project, the pipeline has faced multiple delays and an increasingly higher price tag, mostly due to court challenges to environmental permitting.
The latest news, positive for the pipeline and Equitrans, stems from a lawsuit filed in 2021 by environmental groups led by the Sierra Club against the Virginia State Water Board. The groups claimed the agency had not considered alternative water crossings or verified that the proposed pipeline route was the least environmentally damaging alternative.
The 4th U.S. Circuit Court of Appeals, which has ruled unfavorably against the pipeline in the past, found that because Virginia's "decision to grant MVP's application was neither arbitrary nor capricious, we deny the petition for review." The court found that Virginia regulators had done an extensive review before certifying construction of the pipeline.
The same appeals court has yet to make a ruling on a similar challenge regarding water crossings in West Virginia, also led by the Sierra Club. The Army Corps of Engineers needs both the Virginia and West Virginia approvals to be validated to move forward with MVP's application for a water discharge permit involving dredged and fill materials.
Equitrans' most recent update on the progress of the project stated the pipeline was 94% complete.
Subscribers can click here for related project reports.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
