May 5, 2021 Read More →

Regulatory hurdles postpone Mountain Valley Pipeline startup even further

S&P Global Market Intelligence ($):

Equitrans Midstream Corp. on May 4 said it is further postponing the in-service date of its 303-mile, 2-Bcf/d Mountain Valley Pipeline LLC mainline project, as well as its planned 75-mile pipeline expansion, amid several regulatory and permitting hurdles.

Equitrans said it no longer sees Mountain Valley securing the necessary waterbody and wetland crossing authorizations by the third quarter, and has now included the 2021 to 2022 winter season in its project schedule, resulting in a new expected full in-service date during the summer of 2022. The company anticipates Mountain Valley’s total project cost to be $6.2 billion. It has already financed roughly $2.3 billion of the project as of March 31 and anticipates to fund a total of $3.1 billion.

Equitrans previously expected to place Mountain Valley into service by late 2021. Due to the new schedule of the mainline project, the construction of the MVP Southgate pipeline expansion has also been pushed back to 2022, Equitrans said. The Southgate project is now forecast to start up during the spring of 2023 and is estimated to cost between $450 million and $500 million.

Equitrans has a 47.2% ownership stake in MVP Southgate and a 47.8% ownership stake in the Mountain Valley Pipeline project. Equitrans will serve as operator of both pipelines.

[Dyna Mariel Bade]

More: Equitrans postpones in-service date of Mountain Valley mainline, pipe expansion

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