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Delivery points provide additional natural gas supply to PSNC
Energy, a local distribution company serving North Carolina residents
and businesses
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Proposed route incorporates landowner considerations and addresses
concerns brought forth during the pre-filing process
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The project is designed to provide natural gas access to existing,
expanding and new markets in southern Virginia and central North
Carolina
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The project has the support of the Virginia Chamber of Commerce,
the North Carolina Chamber of Commerce, the North Carolina Economic
Development Association, and other organizations
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More than half of the proposed route (54 percent) is co-located
with existing infrastructure rights-of-way in order to minimize
impacts on landowners and the environment
PITTSBURGH, Pa.--(BUSINESS WIRE)--Mountain Valley Pipeline, LLC, today formally applied to the Federal
Energy Regulatory Commission (FERC) for authorization to build the MVP
Southgate project, a proposed interstate natural gas transmission
pipeline designed to provide reliable, cost-effective access to natural
gas to meet increasing residential and commercial demand in central
North Carolina.
Mountain Valley Pipeline, LLC, will construct and own the proposed MVP
Southgate, which is a joint venture between EQM Midstream Partners, LP
(NYSE: EQM); affiliates of NextEra Energy, Inc. (NYSE: NEE);
Consolidated Edison, Inc. (NYSE: ED); and RGC Resources, Inc. (NASDAQ:
RGCO); WGL Midstream, Inc.; and PSNC Energy. EQM Midstream Partners will
operate the pipeline and own the largest interest in the joint venture.
Mountain Valley Pipeline, LLC, and PSNC Energy have entered into binding
long-term agreements that make PSNC Energy an anchor shipper for the
project, and Mountain Valley Pipeline, LLC, continues discussions with
other potential customers. MVP Southgate will tie into the Mountain
Valley Pipeline near Chatham, Virginia, and transport supplies of
Marcellus and Utica natural gas to delivery points in Rockingham and
Alamance counties in North Carolina for distribution to PSNC Energy’s
residential and commercial customers. As currently proposed, the MVP
Southgate project is approximately 73 miles long; pending regulatory
approval, construction is anticipated to begin in the first quarter
2020, with a full in-service date targeted for the fourth quarter 2020.
Through this certificate application filing, the FERC is being asked to
certify the public convenience and necessity of the MVP Southgate
project. The FERC, together with cooperating agencies, will conduct a
detailed review and evaluation of a broad number of subjects, including
public safety; water resources; air quality; wildlife, soils, and
vegetation; protected species; cultural and historic resources; sound
levels; alternatives; and economic benefits.
On May 15, 2018, the FERC granted authorization to begin the pre-filing
process for the MVP Southgate project. During the past six months, the
MVP Southgate team has conducted three open houses, in addition to
participating in three scoping meetings hosted by the FERC, all aimed at
encouraging an open dialogue with community members, landowners, and
public agencies in order to receive comments and feedback on the MVP
Southgate project. On Sept. 24, Mountain Valley Pipeline, LLC, provided
responses to scoping comments in a filing to the FERC.
The certificate application is a collection of information gathered
before and during the FERC pre-filing process. This comprehensive set of
documentation includes extensive research from environmental,
geological, and economic studies conducted by the MVP Southgate project
team and outside experts, as well as intelligence gathered during
discussions with landowners along the route, local elected officials and
others.
The MVP Southgate project team considered a wide range of alternatives
and variations to the proposed route, and made 191 route adjustments in
response to feedback collected during the pre-filing process. The
proposed route identified in the application encompasses these various
revisions, which include the protection of streams, wetlands, and
cultural resources, as well as the avoidance of, or minimization of
impacts to, several sensitive areas. Examples of such adjustments
include:
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Reduction in temporary right-of-way width from 100' to 75' at wetland
and waterbody crossings
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Proposal to cross Cascade Creek, Wolf Island Creek, and Deep Creek via
conventional bore based on recommendations from the U.S. Fish and
Wildlife Service
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Reduction in the number of proposed compressor stations from two to one
"We appreciate the many landowners, elected leaders, officials at every
level of government, and other stakeholders who provided important
feedback that helped us design the proposed route,” said Diana
Charletta, chief operating officer of EQM Midstream Partners, LP,
operator of the proposed pipeline. “We are committed to building and
operating a state-of-the-art pipeline that serves public demand for
clean-burning, affordable, domestic natural gas.”
The MVP Southgate project’s primary objective is to serve customers of
PSNC Energy, a local distribution company in North Carolina. The
partnership with PSNC Energy is designed to strengthen the reliability
of natural gas service in central North Carolina. Additionally, other
markets along the project area will have the ability to access the MVP
Southgate project, which in turn could attract manufacturing
opportunities to the area. Having a safe, reliable source of natural gas
is important to secure industry growth and stimulate job creation and
spending throughout the region.
“Over the past decade, PSNC Energy has added more than 100,000 new
natural gas customers,” said Rusty Harris, president and chief operating
officer of PSNC Energy. “We are committed to ensuring the highest levels
of service to the homes and businesses that rely on natural gas for
heating, cooking and other uses, and the MVP Southgate project offers
the most efficient and cost-effective way to enhance reliability and
provide the diversity of supply needed to meet our customers’ needs.”
Gary Salamido, chief operating officer and acting president of the NC
Chamber, said, “The NC Chamber supports the MVP Southgate project
because it will improve access to affordable natural gas and help
strengthen North Carolina’s reputation as a leading place in the world
to do business. Many employers rely on natural gas to fuel their
operations and the construction of the MVP Southgate project will
bolster efforts to attract and retain businesses in North Carolina.”
Barry DuVal, president of the Virginia Chamber of Commerce, also
endorsed the project, stating, “Time and again we hear from
manufacturers and other large companies that the availability of natural
gas is a critical component in the site selection process. The Southern
Virginia Mega Site at Berry Hill is the commonwealth’s biggest business
park, and the MVP Southgate project’s proximity to that site offers
tremendous long-term economic development opportunities. The Virginia
Chamber fully supports the project and the potential benefits its
construction and operation could bring.”
From an economic benefits perspective, the MVP Southgate project is
expected to bring significant benefits to Virginia and North Carolina,
and the counties along its route, based on findings from FTI Consulting,
Inc. (FTI), the company that managed and produced the MVP Southgate
project economic benefits report. FTI took a conservative approach to
estimating the state-level impacts related to the MVP Southgate. The MVP
Southgate project estimates:
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Spending $68 million in Virginia and $113 million in North Carolina on
labor, equipment, materials, acquisition and services
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Employment at the peak of construction to support 570 jobs in Virginia
and 1,130 jobs in North Carolina, including direct, indirect, and
induced jobs
-
Annual MVP Southgate ad valorem taxes for Virginia are estimated at
about $1.2 million once the pipeline is operational, and about $3.4
million in North Carolina once the project is operational
-
State and local tax revenues generated during pre-construction and
construction are an estimated $4.1 million in Virginia and $6.3
million in North Carolina (e.g., sales, use, income, property, and
other tax categories)
The application and resource reports, along with proposed route maps,
are available on the MVP Southgate website (www.mvpsouthgate.com);
and paper copies will be placed in public libraries or community
buildings located in counties along the proposed route.
About MVP Southgate
The MVP Southgate is a proposed underground, interstate natural gas
pipeline system that spans approximately 73 miles from southern Virginia
to central North Carolina. The MVP Southgate is subject to approval and
regulatory oversight by the Federal Energy Regulatory Commission.
Mountain Valley Pipeline, LLC, will construct and own the proposed MVP
Southgate, which is a joint venture between EQM Midstream Partners, LP
(NYSE: EQM); affiliates of NextEra Energy, Inc. (NYSE: NEE);
Consolidated Edison, Inc. (NYSE: ED); and RGC Resources, Inc. (NASDAQ:
RGCO); WGL Midstream, Inc.; and PSNC Energy. The MVP Southgate was
designed to transport clean-burning natural gas from the prolific
Marcellus and Utica shale regions to the growing demand markets in
southern Virginia and central North Carolina. Targeting a full
in-service of late 2020, EQM Midstream Partners, the largest interest
owner, will operate the pipeline. From planning and development, to
construction and in-service operation – the MVP Southgate team is
dedicated to the safety of its communities, employees, and contractors;
and to the preservation and protection of the environment. Visit www.mvpsouthgate.com.
Cautionary Statements:
Disclosures in this news release contain certain forward-looking
statements that do not relate strictly to historical or current facts
and are forward-looking. Without limiting the generality of the
foregoing, forward-looking statements contained in this news release
specifically include the expectations of plans, strategies, objectives
and growth, and anticipated financial and operational performance of
Mountain Valley Pipeline, LLC, including guidance regarding the proposed
MVP Southgate project and joint venture, such as the projected length of
the MVP Southgate; the MVP Southgate’s expected interconnections with
facilities and pipelines; the timing of development and construction for
the MVP Southgate; the estimated cost of the MVP Southgate; the expected
in-service date for the MVP Southgate; and the expected economic
benefits of the MVP Southgate. The forward-looking statements included
in this news release are subject to risks and uncertainties that could
cause actual results to differ materially from projected results.
Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results. Mountain
Valley Pipeline, LLC has based these forward-looking statements on
current expectations and assumptions about future events. While Mountain
Valley Pipeline, LLC considers these expectations and assumptions to be
reasonable, they are inherently subject to significant business,
economic, competitive, regulatory, and other risks and uncertainties,
most of which are difficult to predict and are beyond its control. The
risks and uncertainties that may affect the operations, performance, and
results of Mountain Valley Pipeline, LLC and forward looking statements
include, but are not limited to:
The business, financial condition, results of operations and prospects
could suffer if Mountain Valley Pipeline, LLC does not proceed with
projects under development or is unable to complete the construction of,
or capital improvements to, its facilities on schedule or within budget.
The ability to complete construction of, and capital improvement to,
facilities on schedule and within budget may be adversely affected by
escalating costs for materials and labor and regulatory compliance,
inability to obtain or renew necessary licenses, rights-of-way, permits
or other approvals on acceptable terms or on schedule, disputes
involving contractors, labor organizations, landowners, governmental
entities, environmental groups, Native American and aboriginal groups,
and other third parties, negative publicity, transmission
interconnection issues, and other factors. If any development project or
construction or capital improvement project is not completed, is delayed
or is subject to cost overruns, certain associated costs may not be
approved for recovery or recoverable through regulatory mechanisms that
may otherwise be available, and Mountain Valley Pipeline, LLC could
become obligated to make delay or termination payments or become
obligated for other damages under contracts, could experience the loss
of tax credits or tax incentives, or delayed or diminished returns, and
could be required to write-off all or a portion of its investment in the
project. Any of these events could have a material adverse effect on
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects.
Mountain Valley Pipeline, LLC may face risks related to project siting,
financing, construction, permitting, governmental approvals and the
negotiation of project development agreements that may impede its
development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for licenses and
permits from various local, state, federal and other regulatory
authorities and abide by their respective conditions. Should Mountain
Valley Pipeline, LLC be unsuccessful in obtaining necessary licenses or
permits on acceptable terms, should there be a delay in obtaining or
renewing necessary licenses or permits or should regulatory authorities
initiate any associated investigations or enforcement actions or impose
related penalties or disallowances on Mountain Valley Pipeline, LLC,
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects could be materially adversely affected. Any
failure to negotiate successful project development agreements for new
facilities with third parties could have similar results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities and other
facilities are subject to many operational risks. Operational risks
could result in, among other things, lost revenues due to prolonged
outages, increased expenses due to monetary penalties or fines for
compliance failures, liability to third parties for property and
personal injury damage, a failure to perform under applicable sales
agreements and associated loss of revenues from terminated agreements or
liability for liquidated damages under continuing agreements. The
consequences of these risks could have a material adverse effect on
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects.
Uncertainties and risks inherent in operating and maintaining Mountain
Valley Pipeline, LLC's facilities include, but are not limited to, risks
associated with facility start-up operations, such as whether the
facility will achieve projected operating performance on schedule and
otherwise as planned.
Mountain Valley Pipeline, LLC’s business, financial condition, results
of operations and prospects can be materially adversely affected by
weather conditions, including, but not limited to, the impact of severe
weather.
Threats of terrorism and catastrophic events that could result from
terrorism, cyber-attacks, or individuals and/or groups attempting to
disrupt Mountain Valley Pipeline, LLC’s business, or the businesses of
third parties, may materially adversely affect Mountain Valley Pipeline,
LLC’s business, financial condition, results of operations and prospects.
Any forward-looking statement speaks only as of the date on which such
statement is made and Mountain Valley Pipeline, LLC does not intend to
correct or update any forward-looking statement, whether as a result of
new information, future events or otherwise.