Mountain Valley Pipeline to provide natural gas service to Virginia communities

Crude pipeline
Source: DollarPhotoClub

Mountain Valley Pipeline and RGC Midstream have announced their intent to deliver natural gas to several Virginia communities along the proposed Mountain Valley Pipeline route. As part of the agreement, RGC Midstream will acquire a 1% ownership interest in Mountain Valley Pipeline, which is a joint venture between EQT Midstream Partners (majority owner and operator of the proposed pipeline) and affiliates of NextEra Energy, WGL Holdings, and Vega Energy Partners. In addition, Roanoke Gas Company will become a shipper on the pipeline in order to supply and expand its southwest Virginia customer base.

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. 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. It is an approximately 300-mile long, 42-inch diameter pipeline, with an estimated total project cost of $3-$3.5 billion.

“RGC Midstream’s agreement with Mountain Valley Pipeline addresses the growing demand for natural gas in our region and enhances the reliability of our Roanoke Gas system,” said John D’Orazio, president and chief executive officer, RGC Resources. “Strengthening our natural gas supply and bringing access to unserved communities is essential for continued progress in southwest Virginia. It will increase the opportunity for economic growth in our region through a combination of industrial expansions, job creation, and new investments.”

With its connection to EQT Midstream Partners’ existing Equitrans system in West Virginia, the MVP is specifically designed to address infrastructure constraints associated with the rapid development of natural gas from the Marcellus and Utica shale plays, while more importantly offering critical supply diversity to meet the increasing demand for natural gas across the mid-Atlantic and Southeast.

“This agreement further reinforces our commitment to provide safe, reliable, clean-burning natural gas to communities along the MVP route and we are thrilled to have RGC Midstream as a regional partner,” said Randy Crawford, chief operating officer, EQT Midstream Partners.

“Roanoke Gas has been proudly serving its customers across southwest Virginia for more than 130 years; and having access to one of the country’s lowest-cost energy resources will stimulate economic development through new employment and manufacturing opportunities, and also provide a source of additional tax revenues.”

Mountain Valley Pipeline, LLC expects to file a certificate application with the Federal Energy Regulatory Commission (FERC) later this month, and subject to approval by the FERC, the MVP is targeting a full in-service during the fourth quarter of 2018.

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