US Mountain Valley natgas pipe closer to construction after WV permit

RGC Resources

13/06/2023 19:07

June 13 (Reuters) - The $6.6 billion Mountain Valley
natural gas pipeline moved another step closer to restarting
construction after West Virginia environmental regulators issued
a new water permit, the partnership building the pipe said in
court papers.
    Mountain Valley told the U.S. Court of Appeals for the
Fourth Circuit on Monday that West Virginia issued a renewed
Section 401 water quality certification for the West
Virginia-to-Virginia pipe on June 8.
    The Fourth Circuit, which has vacated several of the
project's federal and state permits, some more than once, was
still hearing lawsuits by environmental and local groups opposed
to the project.
    The project is key to unlocking more gas supplies from
Appalachia, the nation's biggest shale gas basin.
    Analysts at Height Capital Markets, an investment banking
and research firm, said language supporting Mountain Valley in
the recently approved U.S. Fiscal Responsibility Act and
issuance of the West Virginia permit "significantly raises the
probability of a 2023 placed-in-service date" for the project.
    Mountain Valley said in the court filing that it expects the
U.S. Army Corps of Engineers to issue a Section 404 water permit
by June 24, as mandated by the Fiscal Responsibility Act.
    "Once (the Army Corps) does, Mountain Valley expects to
resume construction," Mountain Valley said in the filing.
    Mountain Valley, the only big gas pipe under construction
in Appalachia, is one of several U.S. pipeline projects delayed
by regulatory and legal fights with environmental and local
groups.
    When Mountain Valley started construction in February 2018,
Equitrans Midstream Corp  ETRN.N , the lead partner building the
project, estimated the 303-mile (488-km),
2-billion-cubic-feet-per-day project would cost about $3.5
billion and enter service by late 2018.
    Mountain Valley is owned by units of Equitrans, NextEra
Energy Inc  NEE.N , Consolidated Edison Inc  ED.N , AltaGas Ltd
 ALA.TO  and RGC Resources Inc  RGCO.O .

 (Reporting by Scott DiSavino; Editing by Leslie Adler)
 ((scott.disavino@thomsonreuters.com; +1 332 219 1922; Reuters
Messaging: scott.disavino.thomsonreuters.com@reuters.net))