Panel favors Equitrans in EQT PA-WV Hammerhead natgas pipe dispute (updated)

RGC Resources

26/10/2021 18:16

(Adds EQT comment)
    Oct 26 (Reuters) - U.S. pipeline company Equitrans Midstream
Corp  ETRN.N  said on Tuesday that an arbitration panel ruled in
its favor in a dispute with EQT Corp  EQT.N  over the delayed
startup of the Hammerhead natural gas pipe in Pennsylvania and
West Virginia.
    Hammerhead is a gathering pipeline designed to feed about
1.6 billion cubic feet per day (bcfd) of gas into the Mountain
Valley pipe once that long-delayed project enters service.
    Equitrans said the 2.0-bcfd Mountain Valley pipe from West
Virginia to Virginia was on track to enter service in the summer
of 2022 at a cost of around $6.2 billion.
    Equitrans has said Hammerhead cost about $555 million to
build. EQT, the biggest U.S. gas producer and former parent of
Equitrans, has a contract to transport about 1.2 bcfd on
Hammerhead.
    In a filing with the U.S. Securities and Exchange
Commission, Equitrans said the arbitration panel determined the
in-service delay for Hammerhead was caused by a force majeure.
    Hence, EQT has no early termination right under the
Hammerhead agreement or related right to purchase the Hammerhead
project, according to the Equitrans filing.
    "We are pleased with the panel’s unanimous decision (and)
look forward to continuing our long-standing partnership with
EQT," Equitrans spokesperson Natalie Cox said in an email,
noting Hammerhead has been "ready and waiting" for the
completion of Mountain Valley.
    EQT said in an email that it was "disappointed" but
appreciates "having a resolution to this dispute."
    Mountain Valley is one of several U.S. pipelines delayed by
regulatory and legal fights with environmental and local groups
that found problems with federal permits issued by the Trump
administration. 
    When Mountain Valley started construction in February 2018,
it estimated the 303-mile project would cost about $3.5 billion
and enter service by late 2018. 
    Mountain Valley is owned by units of Equitrans, which has a
47.8%-interest in the project and will operate the pipeline,
NextEra Energy  NEE.N , Consolidated Edison  ED.N , AltaGas
 ALA.TO  and RGC Resources  RGCO.O .

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RGC sees Mountain Valley gas pipeline completion by end 2021
-CEO     urn:newsml:reuters.com:*:nL1N2KI1OJ
MVP Southgate natgas pipe startup seen in 2021 despite
N.Carolina permit denial     urn:newsml:reuters.com:*:nL1N2FE1FI
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 (Reporting by Scott DiSavino; Editing by David Gregorio)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))