June 12, 2020 Read More →

Developer EQM Midstream says Mountain Valley Pipeline will cost more, take longer

S&P Global Market Intelligence ($):

Citing the need to adapt to recent regulatory challenges, Mountain Valley Pipeline LLC once again delayed the in-service date of its 2-Bcf/d gas pipeline project to early 2021 and estimated a potential 5% increase over the project’s $5.4 billion budget.

The new in-service date, pushed back from the earlier schedule of late 2020, reflects updates to the project’s planned construction schedule, including uncertainty surrounding the timing of permits for crossing the Jefferson National Forest and Appalachian Trail, spanning 3.7 miles; and water bodies, which total about 10 miles of pipeline, Mountain Valley said in a June 11 news release.

Recently, a decision by the U.S. Court of Appeals for the 9th Circuit preserved a prohibition on key water crossing authorizations for all U.S. oil and natural gas pipelines. The court in May rejected an Army Corps request for a stay of a lower court decision that canceled the agency’s Nationwide Permit 12 program for pipelines.

The changes created carrying costs and required additional crews to maintain the 303-mile pipeline route during construction halts and through the coming winter months. Mountain Valley said it expects to resume forward construction upon receiving a biological opinion and once the Federal Energy Regulatory Commission lifts its stop-work order.

EQM Midstream Partners LP, which holds a 45.7% stake and serves as operator of the pipeline, said it has completed approximately 92% of the project.

“First and foremost, we are confident in the ultimate completion of this important infrastructure project,” Diana Charletta, EQM Midstream president and COO, said in the release. “While the additional legal and regulatory reviews have caused schedule delays and cost adjustments, we look forward to MVP’s safe, successful start-up and to serving the growing demand for domestic natural gas in the mid-Atlantic and Southeast regions of the United States.”

[Dyna Mariel Bade]

More ($): Mountain Valley Pipeline again delays in-service date, raises project costs

Comments are closed.