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MVP, Con Edison Strike 20-Year Deal For 250,000 Dth/d

Mountain Valley Pipeline LLC (MVP) and Consolidated Edison Inc. (Con Edison) announced Friday a pair of 20-year transportation agreements for the New York-based gas and electric utility to move 250,000 Dth/d on MVP and the connected Equitrans system operated by EQT Midstream Partners LP.

The 300-mile, 42-inch diameter, 2 million Dth/d MVP filed with FERC in October (see Daily GPI, Oct. 23, 2015). MVP would move gas produced in Appalachia to markets in the Mid-Atlantic and Southeast. The Equitrans system, which would provide shippers access to MVP and other major transmission lines, also filed with the Federal Energy Regulatory Commission in October (see Daily GPI, Oct. 29, 2015).

The MVP would stretch from the Equitrans system in Wetzel County, WV, to Transcontinental Pipeline Co.’s Zone 5 compressor station 165 in Pittsylvania County, VA.

Ivan Kimball, Con Edison vice president of energy management, said the agreements will help provide “low-cost, reliable supply to meet its gas customers’ needs” while offering “significant savings.”

EQT Midstream COO Randy Crawford said Con Edison’s “participation further validates the need for supply diversification, which is offered through MVP’s access to one of our country’s largest and lowest-cost energy resources,” adding that the proposed MVP will help address “Appalachian infrastructure limitations.”

The companies simultaneously announced a separate deal for Con Edison subsidiary Con Edison Gas Midstream LLC to acquire a 12.5% interest in the MVP joint venture, joining EQT Midstream (45.5%), NextEra Energy Inc. (31%), WGL Holdings Inc. (7%), Vega Energy Partners Ltd. (3%) and RGC Resources Inc. (1%).

Pending FERC approval, MVP, expected to cost $3-$3.5 billion, is targeting an in-service date in 4Q2018.

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