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Released February 21, 2022 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--After recording an $800 million impairment charge this quarter for the Mountain Valley Pipeline (MVP), NextEra Energy Incorporated (NYSE:NEE) (Juno Beach, Florida), says it is re-evaluating its investment in the project.
The latest development comes after the Fourth U.S. Circuit Court of Appeals vacated the project's biological opinion that had been issued by the U.S. Fish and Wildlife Service and rejected a government permit allowing the pipeline to pass through the Jefferson National Forest on the Virginia-West Virginia Border. For related information, see February 8, 2022, article - New Legal Hurdles Cast Doubt on Mountain Valley Pipeline Completion Date.
"While NextEra Energy Resources continues to evaluate options and next steps with its joint venture partners, these events caused NextEra Energy Resources to re-evaluate its investment in Mountain Valley Pipeline, which evaluation coincided with the preparation of NEE's December 31, 2021 financial statements," Next Era said in an 8-K filing on Friday with the U.S. Securities and Exchange Commission.
Stretching 303 miles from northwestern West Virginia to southern Virginia, the MVP project is 94% complete and is expected to provide up to 2 million dekatherms per day of natural gas from the Marcellus and Utica shale formations to markets in the Mid- and South-Atlantic regions.
A three-judge panel of the Fourth Circuit U.S. Court of Appeals rejected the U.S. Fish and Wildlife Service's assessment of the MVP's impact on two endangered fish, the Roanoke logperch and the candy darter. As a result, the agency will have to revise its evaluation.
Originally planned to be completed in 2018 at a cost of $3.5 billion, the estimated price tag of the MVP now is $6.2 billion, due in large part to halts and other issues caused by litigation.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here for detailed active reports.
Work Wraps Up on Mariner East Pipeline
In other pipeline news, Energy Transfer LP (NYSE:ET) (Dallas, Texas) said construction of the final phase of the Mariner East natural gas liquids pipeline project was completed this month and commissioning was in progress.
"Energy Transfer's Mariner East franchise will now include multiple pipelines across Pennsylvania, connecting the prolific Marcellus/Utica Basins in the west to markets throughout the state and the broader region, including Energy Transfer's Marcus Hook terminal on the East Coast," the company said in its February 16 fourth-quarter earnings press release. Subscribers can click here for related project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
The latest development comes after the Fourth U.S. Circuit Court of Appeals vacated the project's biological opinion that had been issued by the U.S. Fish and Wildlife Service and rejected a government permit allowing the pipeline to pass through the Jefferson National Forest on the Virginia-West Virginia Border. For related information, see February 8, 2022, article - New Legal Hurdles Cast Doubt on Mountain Valley Pipeline Completion Date.
"While NextEra Energy Resources continues to evaluate options and next steps with its joint venture partners, these events caused NextEra Energy Resources to re-evaluate its investment in Mountain Valley Pipeline, which evaluation coincided with the preparation of NEE's December 31, 2021 financial statements," Next Era said in an 8-K filing on Friday with the U.S. Securities and Exchange Commission.
Stretching 303 miles from northwestern West Virginia to southern Virginia, the MVP project is 94% complete and is expected to provide up to 2 million dekatherms per day of natural gas from the Marcellus and Utica shale formations to markets in the Mid- and South-Atlantic regions.
A three-judge panel of the Fourth Circuit U.S. Court of Appeals rejected the U.S. Fish and Wildlife Service's assessment of the MVP's impact on two endangered fish, the Roanoke logperch and the candy darter. As a result, the agency will have to revise its evaluation.
Originally planned to be completed in 2018 at a cost of $3.5 billion, the estimated price tag of the MVP now is $6.2 billion, due in large part to halts and other issues caused by litigation.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipelines Project Database can click here for detailed active reports.
Work Wraps Up on Mariner East Pipeline
In other pipeline news, Energy Transfer LP (NYSE:ET) (Dallas, Texas) said construction of the final phase of the Mariner East natural gas liquids pipeline project was completed this month and commissioning was in progress.
"Energy Transfer's Mariner East franchise will now include multiple pipelines across Pennsylvania, connecting the prolific Marcellus/Utica Basins in the west to markets throughout the state and the broader region, including Energy Transfer's Marcus Hook terminal on the East Coast," the company said in its February 16 fourth-quarter earnings press release. Subscribers can click here for related project reports.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn.
