U.S. pipeline company Equitrans Midstream Corp. said on May 4 the venture building the Mountain Valley natural gas pipeline from West Virginia to Virginia delayed its startup to the summer of 2022 and boosted its estimated cost to $6.2 billion.
That timeline was in line with several analysts’ forecasts. Earlier, the Mountain Valley Pipeline (MVP) venture expected the project to enter service by the end of 2021 at an estimated cost of $5.8-$6 billion.
Equitrans said the delay was due to requests by environmental regulators in Virginia and West Virginia to the U.S. Army Corps of Engineers to extend the 120-day review period to evaluate MVP’s water quality certification applications.
In anticipation of a lengthy legal battle, MVP in February decided to pull its previously approved Nationwide Permit 12, which allowed the pipeline to cross several waterbodies under one authorization, and instead file some 300 individual stream crossing permits with the Army Corps and states.
It is those applications the states want more time to review.
MVP is one of several U.S. pipelines delayed by regulatory and legal fights with environmental and local groups that found problems with federal permits—like the Nationwide Permit—issued by the Trump administration.
When MVP started construction in February 2018, it estimated the 303-mile, 2 billion cubic feet per day project would cost about $3.5 billion and enter service by late 2018.
MVP is owned by units of Equitrans, which has a 47.8% interest in the project and will operate the pipeline, NextEra Energy, Consolidated Edison, AltaGas and RGC Resources.
Separately, Equitrans said MVP is targeting starting construction of the $450 million-$500 million Southgate pipeline extension from Virginia to North Carolina in 2022 and placing the project in service during the spring of 2023. Equitrans owns 47.2% of MVP Southgate and will operate the pipeline.
Recommended Reading
Oxy Aims to Expand Lithium Tech to Arkansas
2024-11-26 - Occidental Petroleum CEO Vicki Hollub confirms the Arkansas leases with its TerraLithium subsidiary that could expand its joint venture with Warren Buffett’s BHE Renewables.
Baker Hughes Defies Nature with an Upgrade to Ol’ Fashioned Cement
2024-10-15 - Baker Hughes’ InvictaSet uses regenerative capabilities to provide operators with a sustainable cement solution that can last for years.
Water Management Called ‘Massive Headwind’ for Permian Operators
2024-11-21 - Amanda Brock, CEO of Aris Water Solutions, says multiple answers will be needed to solve the growing amounts of produced water generated by fracking.
E&P Highlights: Dec. 2, 2024
2024-12-02 - Here’s a roundup of the latest E&P headlines, including production updates and major offshore contracts.
E&P Highlights: Nov. 4, 2024
2024-11-05 - Here’s a roundup of the latest E&P headlines, including a major development in Brazil coming online and a large contract in Saudi Arabia.