US-based Equitrans Midstream announced that it is aiming to startup the $5.4bn Mountain Valley natural gas pipeline in early 2021.
The project is among the US oil and gas pipelines that have faced delays due to regulatory and legal hurdles.
Covering a distance of approximately 488km, the pipeline will run from northwestern West Virginia to southern Virginia.
The pipeline will deliver natural gas from producers in Marcellus and Utica shale plays to customers in the mid-Atlantic and southeast regions of the US.
Upon completion, the Mountain Valley pipeline will a capacity to deliver up to two billion cubic feet (bcf) of natural gas a day, the pipeline.
The pipeline will be constructed and owned by Mountain Valley Pipeline (MVP), which is a joint venture EQM Midstream Partners, NextEra Capital, Con Edison Transmission, AltaGas and RGC Midstream.
Equitrans expects an increase in the cost of the Mountain Valley pipeline
The midstream company expects an increase in the total cost of the gas pipeline by 5% to $5.7bn.
According to Equitrans, the increase in cost is due to adjustments to be made to the construction plan for potential complex judicial decisions and regulatory changes.
The company expects that “it may be required to fund approximately $175 million related to the potential increase in project costs.”
In June, a ruling by the Supreme Court of the United States cleared the path for the pipeline’s Appalachian Trail crossing.
The apex court reversed a lower court decision regarding the US Forest Service’s authority to grant a right-of-way to cross the Appalachian Trail.
Equitrans stated: “MVP JV expects a new Biological Opinion to be issued shortly, with certain forward construction activities resuming upon approval from the US Federal Energy Regulatory Commission (FERC).
“Following the Biological Opinion, MVP JV expects to receive the Nationwide Permit 12 from the U.S. Army Corps of Engineers, which combined with FERC approval, will allow water body crossing activities to resume.”
