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US regulator approves Mountain Valley Southgate pipeline construction in North Carolina

US regulator approves Mountain Valley Southgate pipeline construction in North Carolina

- The U.S. Federal Energy Regulatory Commission on Wednesday approved Mountain Valley Pipeline's request to begin construction of the North Carolina portion of its Southgate Amendment Project, according to a letter from FERC's Office of Energy Projects.

  • The approval follows a recent federal appeals court decision denying requests by environmental and other groups to stay water quality certifications issued by Virginia and North Carolina for the proposed project.

  • The Southgate project is a planned 31-mile pipeline extension from Virginia into North Carolina, designed to move about 0.55 billion cubic feet per day of natural gas.

  • MVP's main line entered service in June 2024 after years of construction delays and legal challenges.

  • FERC previously authorized construction in Virginia in March 2026.

  • The U.S. Department of Energy has said Southgate could enter service in 2028 at an estimated cost of $524 million.

  • MVP is owned by units of energy firms EQT EQT.N, NextEra Energy NEE.N, AltaGas ALA.TO and RGC Resources RGCO.O. EQT operates the pipeline and owns a significant interest in the MVP joint venture, according to the company website.


(Reporting by Pranav Mathur in Bengaluru. Editing by Mark Potter)

((Pranav.Mathur@thomsonreuters.com;))

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