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Fully Subscribed Mountain Valley Targets December 2018 In-Service
Mountain Valley Pipeline LLC has filed at FERC for its 301-mile project to transport up to 2 million Dth/d of Appalachian gas to serve markets in the Mid-Atlantic and Southeast, as well as in Appalachia.
The company is a joint venture of units of EQT Midstream Partners LP, NextEra Energy US Gas Assets LLC, WGL Midstream Inc., Vega Midstream MVP LLC, and RGC Midstream LLC. Shippers signing up for the project’s full capacity are EQT Energy LLC, Roanoke Gas, USG Properties Marcellus Holdings LLC and WGL Midstream.
Mountain Valley proposes to construct 301 miles of 42-inch diameter pipeline, three compressor stations and other facilities. The pipeline would interconnect with facilities of Columbia Gas Transmission LLC, Transcontinental Gas Pipe Line Co. LLC (Transco), and Equitrans LP. A unit of EQT would operate the pipeline.
The pipeline is fully subscribed and is designed to carry Appalachian gas southeast to the Transco system at Station 165. Transco Station 165 is the pooling point for Zone 5 on Transco’s system and a gas trading hub for the Mid-Atlantic market.
“Natural gas at this strategic point will serve not only the growing Mid-Atlantic market, but also the growing southeastern market,” the project backers told FERC [CP16-10]. “In addition, existing and future markets along the Mountain Valley route, such as Roanoke Gas, can receive service…[T]he increasing natural gas demand by local and regional markets, and the project shippers; contractual commitments for the entire capacity of the project, are clear evidence of the need for the Mountain Valley Project.”
Notably, a portion of the pipeline’s proposed route would cross the Jefferson National Forest for 1.6 miles, including the Appalachian National Scenic Trail northwest of the town of Goldbond, Giles County, VA. West of the town of Kimbleton, VA, the pipeline would co-locate with an Appalachian Power Co. transmission line.
“Appalachian Basin production is increasingly displacing the historical Gulf [Coast ]supplies for the growing markets on the Eastern Seaboard,” the Mountain Valley partners told the Federal Energy Regulatory Commission [CP16-10]. “Moreover, natural gas demand continues to increase in the Gulf region. Thus, this Gulf gas supply will be needed to help meet that growing demand.
“Accordingly, the up to 2.0 million Dth/d that the project will transport to Station 165 will allow the Mid-Atlantic and southeastern markets to meet their growing needs, while also continuing the transition away from historic Gulf supplies. In addition, this supply diversification will result in greater reliability and have a positive economic effect on natural gas prices in the Mid-Atlantic and southeastern regions.”
Mountain Valley was announced in June 2014 by EQT and NextEra (see Shale Daily, June 12, 2014). A nonbinding open season later that year drew interest in up to 1.5 Bcf/d of capacity (see Shale Daily, Sept. 2, 2014). Prefiling review of the project was sought last October (see Shale Daily, Oct. 29, 2014). Roanoake Gas recently signed up for Mountain Valley capacity and became a small equity interest holder in the project (see Daily GPI, Oct. 2).
The company said it wants to begin construction in late 2016. Facilities from the Mobley area to an interconnection with Columbia’s Line WB would enter service by December 2017. The remainder of the project from the WB interconnect to the Transco interconnect would enter service by December 2018.
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