Released June 28, 2022 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--Citing ongoing legal and permitting challenges, developers of the Mountain Valley Pipeline (MVP) are asking the Federal Energy Regulatory Commission (FERC) to extend the deadline to complete the project to October 13, 2026.
Now 94% complete, the 303-mile natural gas pipeline from West Virginia to southern Virginia has been beset by litigation and unfavorable court rulings. In May, Equitrans Midstream Corporation (NYSE:ETRN) (Pittsburgh, Pennsylvania), the lead partner in the project, said it would pursue new permits for the project that were struck down by a three-judge panel of the Fourth Circuit U.S. Court of Appeals. The company delayed the planned in-service date for the pipeline from this year to the second half of 2023.
Originally planned to be completed in 2018 at a cost of $3.5 billion, the pipeline now carries a $6.6 billion price tag. It 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. For more information, see May 6, 2022, article - Mountain Valley Pipeline: More Expensive, New Completion Date.
"Mountain Valley has shown good cause for the extension as project construction is substantially complete and Mountain Valley is actively working to reinstate all required permits so that it can complete construction as expeditiously as possible for the benefit of landowners, the environment, project shippers, and end-users of natural gas," MVP Assistant General Counsel Matthew Eggerding said in a June 24 letter to FERC Secretary Kimberly Bose.
Eggerding noted FERC had granted a two-year extension for the pipeline on October 9, 2020.
"Mountain Valley has demonstrated and will continue to demonstrate good faith efforts to meet its deadlines and complete the project," Eggerding said, adding MVP has spent about $5.5 billion on the project to date and is spending more than $20 million per month on project stabilization and restoration.
A spokesperson for MVP said that despite the extension request, the project developers still hope the pipeline will be in service by late 2023, according to The Roanoke Times.
In his letter to FERC, Eggerding said, "Despite a continual barrage of attacks from project opponents, Mountain Valley remains committed to completing this critical infrastructure project. Granting this extension of time will enable Mountain Valley to continue to work cooperatively with all affected stakeholders and permit agencies to complete construction and achieve final restoration."
Eggerding continued, "Mountain Valley is aware that project opponents will stop at nothing in their attempts to kill the project and Mountain Valley expects vigorous opposition to this request for an extension of time."
Environmental groups and some affected landowners say the pipeline jeopardizes endangered species and would cause extensive damage to the environment. In April, FERC amended the pipeline's 2017 certificate to allow the project to bore under some water crossings instead of using open cuts. The use of trenchless water crossings would result in fewer environmental impacts, FERC said.
Industrial Info is tracking five projects tied to the MVP. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports and click here for related plant profiles.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
Now 94% complete, the 303-mile natural gas pipeline from West Virginia to southern Virginia has been beset by litigation and unfavorable court rulings. In May, Equitrans Midstream Corporation (NYSE:ETRN) (Pittsburgh, Pennsylvania), the lead partner in the project, said it would pursue new permits for the project that were struck down by a three-judge panel of the Fourth Circuit U.S. Court of Appeals. The company delayed the planned in-service date for the pipeline from this year to the second half of 2023.
Originally planned to be completed in 2018 at a cost of $3.5 billion, the pipeline now carries a $6.6 billion price tag. It 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. For more information, see May 6, 2022, article - Mountain Valley Pipeline: More Expensive, New Completion Date.
"Mountain Valley has shown good cause for the extension as project construction is substantially complete and Mountain Valley is actively working to reinstate all required permits so that it can complete construction as expeditiously as possible for the benefit of landowners, the environment, project shippers, and end-users of natural gas," MVP Assistant General Counsel Matthew Eggerding said in a June 24 letter to FERC Secretary Kimberly Bose.
Eggerding noted FERC had granted a two-year extension for the pipeline on October 9, 2020.
"Mountain Valley has demonstrated and will continue to demonstrate good faith efforts to meet its deadlines and complete the project," Eggerding said, adding MVP has spent about $5.5 billion on the project to date and is spending more than $20 million per month on project stabilization and restoration.
A spokesperson for MVP said that despite the extension request, the project developers still hope the pipeline will be in service by late 2023, according to The Roanoke Times.
In his letter to FERC, Eggerding said, "Despite a continual barrage of attacks from project opponents, Mountain Valley remains committed to completing this critical infrastructure project. Granting this extension of time will enable Mountain Valley to continue to work cooperatively with all affected stakeholders and permit agencies to complete construction and achieve final restoration."
Eggerding continued, "Mountain Valley is aware that project opponents will stop at nothing in their attempts to kill the project and Mountain Valley expects vigorous opposition to this request for an extension of time."
Environmental groups and some affected landowners say the pipeline jeopardizes endangered species and would cause extensive damage to the environment. In April, FERC amended the pipeline's 2017 certificate to allow the project to bore under some water crossings instead of using open cuts. The use of trenchless water crossings would result in fewer environmental impacts, FERC said.
Industrial Info is tracking five projects tied to the MVP. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database can click here for a list of detailed project reports and click here for related plant profiles.
Industrial Info Resources (IIR) is the world's leading provider of market intelligence across the upstream, midstream and downstream energy markets and all other major industrial markets. IIR's Global Market Intelligence Platform (GMI) supports our end-users across their core businesses, and helps them connect trends across multiple markets with access to real, qualified and validated project opportunities. Follow IIR on: LinkedIn.
