Mountain Valley will transport gas from Marcellus to Virginia
The Federal Energy Regulatory Commission released its final environmental impact statement for the Mountain Valley pipeline project today.
The Mountain Valley pipeline project is a 300 mile natural gas pipeline that will transport gas from the heart of the Marcellus in Northern West Virginia to Southern Virginia. MVP estimates the pipeline will cost around $3.5 billion to construct.
Mountain Valley is a joint venture between EQT Midstream Partners (ticker: EQM), NextEra Energy (ticker: NEE), Con Edison Transmission (ticker: ED), WGL Midstream (ticker: WGL), and RGC Midstream (ticker: RGCO).
Source: Mountain Valley
With a diameter of 42 inches, MVP will transport up to 2 million dekatherms per day from the Marcellus to the TRANSCO pipeline. TRANSCO, owned by Williams Partners (ticker: WPZ), is a very large gas pipeline that transports gas from the Gulf coast to New York City. With a maximum capacity of 9.6 Bcf/d, TRANSCO is a major component of U.S. natural gas infrastructure.
Source: Williams
FERC’s EIS for the Mountain Valley pipeline states that the pipeline will have a significant impact on forests in Virginia and West Virginia, the result of clearing a 125-foot easement for construction. Other adverse effects would be temporary or short-term.
Mountain Valley anticipates beginning pipeline construction in Q4 2017, with service beginning in Q4 2018. However, it is not clear if this timeline is possible. FERC is still without a quorum, and therefore cannot issue final approval on pipeline projects.
FERC has been dead in the water since the beginning of March, when Chairman Norman Bay resigned. However, there is good news for pipeline operators, as two candidates for FERC commissioners are currently awaiting confirmation by the senate. If these commissioners are approved, they can begin working through the $16.7 billion in pipeline projects awaiting FERC approval.
