Providing Major Northeast Demand Market Access to Abundant
Appalachian Supply
Mountain Valley Pipeline, LLC and Consolidated Edison, Inc. (NYSE: ED)
today announced their intent to deliver natural gas to industrial and
consumer end-use markets located in the growing demand areas of the
northeast United States through a 20-year transportation agreement with
Consolidated Edison Company of New York, Inc. (Con Edison) for 250,000
dekatherms per day of firm capacity on Mountain Valley Pipeline (MVP).
Con Edison also agreed to a 20-year firm transportation agreement for
250,000 dekatherms per day on the Equitrans system, located in northern
West Virginia and southwestern Pennsylvania, providing more direct
access to supply resources upstream of MVP. Equitrans is owned and
operated by EQT Midstream Partners, LP (NYSE: EQM).
“Con Edison is responsible for obtaining low-cost, reliable supply to
meet its gas customers’ needs. The MVP and Equitrans capacity agreements
allow customers to achieve significant savings,” said Ivan Kimball, Vice
President of Energy Management, Con Edison.
With the rapid development and vast supply of natural gas in the
Appalachian region, the strategic design of the MVP will extend from the
Equitrans transmission system in Wetzel County, West Virginia, to
Transcontinental Gas Pipeline Company’s (Transco) Zone 5 compressor
station 165 in Pittsylvania County, Virginia. The MVP is expected to
provide at least two million dekatherms per day of firm transmission
capacity and has secured commitments at 20-year terms for this amount,
which will support communities along the route, as well as the growing
demand markets of the Mid-Atlantic and Southeast regions of the United
States.
“Con Edison is a well-respected utility company that has been serving
its northeast customers for more than 190 years and we are thrilled to
have them as a partner with Mountain Valley Pipeline. Their
participation further validates the need for supply diversification,
which is offered through MVP’s access to one of our Country’s largest
and lowest-cost energy resources,” said Randy Crawford, chief operating
officer, EQT Midstream Partners. “The MVP project addresses Appalachian
infrastructure limitations and, more importantly, offers supply
diversity to meet the increasing demand for safe, reliable natural gas
by both consumer and industrial markets.”
In another agreement, Con Edison Gas Midstream, LLC, a subsidiary of
Consolidated Edison, Inc., will acquire a 12.5% ownership interest in
Mountain Valley Pipeline, LLC, which is a joint venture between EQT
Midstream Partners, LP, operator of the proposed pipeline with a 45.5%
ownership interest; and affiliates of NextEra Energy, Inc. (NYSE: NEE)
at 31% ownership; WGL Holdings, Inc. (NYSE: WGL) at 7% ownership; Vega
Energy Partners, Ltd at 3% ownership; and RGC Resources, Inc. (NASDAQ:
RGCO) at 1% ownership.
The MVP is an approximately 300-mile long, 42-inch diameter pipeline,
with an estimated total project cost of $3-$3.5 billion. Mountain Valley
Pipeline, LLC filed a certificate application with the Federal Energy
Regulatory Commission (FERC) in October 2015, and subject to approval by
the FERC, the MVP is targeting a full in-service during the fourth
quarter of 2018.
About Mountain Valley Pipeline
The Mountain Valley Pipeline (MVP) is a proposed underground, interstate
natural gas pipeline system that spans approximately 300 miles from
northwestern West Virginia to southern Virginia. Subject to approval and
regulatory oversight by the Federal Energy Regulatory Commission, the
MVP will be constructed and owned by Mountain Valley Pipeline, LLC – a
joint venture of EQT Midstream Partners, LP; NextEra US Gas Assets, LLC;
Con Edison Gas Midstream, LLC; WGL Midstream; Vega Midstream MVP LLC;
and RGC Midstream, LLC. The MVP was designed to transport clean-burning
natural gas from the prolific Marcellus and Utica shale regions to the
growing demand markets in the Mid-Atlantic and Southeast areas of the
United States. Targeting a full in-service of late 2018, EQT Midstream
Partners, primary interest owner, will operate the pipeline. From
planning and development, to construction and in-service operation – MVP
is dedicated to the safety of its communities, employees, and
contractors; and to the preservation and protection of the environment.
Visit www.mountainvalleypipeline.info
Mountain Valley Pipeline, LLC Cautionary Statements
Disclosures in this news release contain certain forward-looking
statements that do not relate strictly to historical or current facts
and are forward-looking. Without limiting the generality of the
foregoing, forward-looking statements contained in this news release
specifically include the expectations of plans, strategies, objectives
and growth, and anticipated financial and operational performance of
Mountain Valley Pipeline, LLC, including guidance regarding the proposed
Mountain Valley Pipeline (MVP) and joint venture, such as the projected
length and pipeline diameter of the MVP; the MVP’s expected
interconnections with facilities and pipelines; existing customer
commitments; the timing of development and construction for the MVP; the
estimated cost of the MVP; and the expected in-service date for the MVP.
The forward-looking statements included in this news release are subject
to risks and uncertainties that could cause actual results to differ
materially from projected results. Accordingly, investors should not
place undue reliance on forward-looking statements as a prediction of
actual results. Mountain Valley Pipeline, LLC has based these
forward-looking statements on current expectations and assumptions about
future events. While Mountain Valley Pipeline, LLC considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory, and
other risks and uncertainties, most of which are difficult to predict
and are beyond its control. The risks and uncertainties that may affect
the operations, performance, and results of Mountain Valley Pipeline,
LLC and forward-looking statements include, but are not limited to:
The business, financial condition, results of operations and prospects
could suffer if Mountain Valley Pipeline, LLC does not proceed with
projects under development or is unable to complete the construction of,
or capital improvements to, its facilities on schedule or within budget.
The ability to complete construction of, and capital improvements to,
facilities on schedule and within budget may be adversely affected by
escalating costs for materials and labor and regulatory compliance,
inability to obtain or renew necessary licenses, rights-of-way, permits
or other approvals on acceptable terms or on schedule, disputes
involving contractors, labor organizations, land owners, governmental
entities, environmental groups, Native American and aboriginal groups,
and other third parties, negative publicity, transmission
interconnection issues, and other factors. If any development project or
construction or capital improvement project is not completed, is delayed
or is subject to cost overruns, certain associated costs may not be
approved for recovery or recoverable through regulatory mechanisms that
may otherwise be available, and Mountain Valley Pipeline, LLC could
become obligated to make delay or termination payments or become
obligated for other damages under contracts, could experience the loss
of tax credits or tax incentives, or delayed or diminished returns, and
could be required to write-off all or a portion of its investment in the
project. Any of these events could have a material adverse effect on
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects.
Mountain Valley Pipeline, LLC may face risks related to project siting,
financing, construction, permitting, governmental approvals and the
negotiation of project development agreements that may impede its
development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for licenses and
permits from various local, state, federal and other regulatory
authorities and abide by their respective conditions. Should Mountain
Valley Pipeline, LLC be unsuccessful in obtaining necessary licenses or
permits on acceptable terms, should there be a delay in obtaining or
renewing necessary licenses or permits or should regulatory authorities
initiate any associated investigations or enforcement actions or impose
related penalties or disallowances on Mountain Valley Pipeline, LLC,
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects could be materially adversely affected. Any
failure to negotiate successful project development agreements for new
facilities with third parties could have similar results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities and other
facilities are subject to many operational risks. Operational risks
could result in, among other things, lost revenues due to prolonged
outages, increased expenses due to monetary penalties or fines for
compliance failures, liability to third parties for property and
personal injury damage, a failure to perform under applicable sales
agreements and associated loss of revenues from terminated agreements or
liability for liquidated damages under continuing agreements. The
consequences of these risks could have a material adverse effect on
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects.
Uncertainties and risks inherent in operating and maintaining Mountain
Valley Pipeline, LLC's facilities include, but are not limited to, risks
associated with facility start-up operations, such as whether the
facility will achieve projected operating performance on schedule and
otherwise as planned.
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects can be materially adversely affected by
weather conditions, including, but not limited to, the impact of severe
weather.
Threats of terrorism and catastrophic events that could result from
terrorism, cyber-attacks, or individuals and/or groups attempting to
disrupt Mountain Valley Pipeline, LLC’s business, or the businesses of
third parties, may materially adversely affect Mountain Valley Pipeline,
LLC’s business, financial condition, results of operations and prospects.
Any forward-looking statement speaks only as of the date on which such
statement is made and Mountain Valley Pipeline, LLC does not intend to
correct or update any forward-looking statement, whether as a result of
new information, future events or otherwise.
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