PITTSBURGH & WASHINGTON--(BUSINESS WIRE)--Mountain Valley Pipeline, LLC, a joint venture between affiliates of EQT
Corporation (NYSE:EQT) and NextEra Energy, Inc. (NYSE:NEE) today
announced that a subsidiary of WGL Holdings, Inc. (NYSE:WGL), WGL
Midstream, has acquired a 7% ownership interest in the joint venture,
and a subsidiary of Vega Energy Partners, Ltd., Vega Midstream MVP LLC,
has acquired a 3% interest. NextEra Energy will hold a 35% interest;
and as previously announced, EQT Midstream Partners, LP (NYSE:EQM) is
expected to assume EQT’s 55% majority interest in the joint venture and
to operate the proposed Mountain Valley Pipeline.
“WGL Midstream’s agreement with Mountain Valley Pipeline helps to
address the growing transportation constraints facing natural gas
producers and, more importantly, offers critical supply diversity to
meet the increasing demand for natural gas in the mid-Atlantic region
and Southeast markets,” said WGL Chairman and CEO, Terry D. McCallister.
“As the need for natural gas continues to increase in these fast growing
markets, WGL is well positioned with customized energy solutions to meet
this growth through our evolving business capabilities.”
As part of the agreement, WGL Midstream will be a shipper on the
proposed Mountain Valley Pipeline (MVP) – and has also committed to
buying a significant amount of natural gas at Transcontinental Gas
Pipeline Company’s (Transco) Zone 5 compressor station 165 in
Pittsylvania County, Virginia – a highly marketable trading area along
the East Coast.
“WGL has a major presence in this market and currently moves significant
volume on Transco’s mainline; therefore, securing them as a joint
venture partner validates the market’s need for additional energy supply
sources at station 165 – and also reaffirms our commitment to provide a
safe, reliable supply of Appalachian-produced natural gas to regional
markets in the mid-Atlantic and Southeast United States,” stated Randy
Crawford, senior vice president, EQT Corporation; and chief operating
officer, EQT Midstream Partners.
With its connection to the 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
Southeast. The MVP is expected to provide at least 2 Bcf per day of firm
transmission capacity and has secured commitments at 20-year terms for
this minimum capacity amount. The estimated 300-mile long pipeline is
currently targeted at 42” in diameter, with an approximate project cost
of $3-$3.5 billion.
“The addition of WGL Midstream continues to support the overall
importance of this project to the region,” said TJ Tuscai, president,
NextEra US Gas Assets. “This project will support economic growth and
energy supply diversity in the Southeast and mid-Atlantic for years to
come.”
Subject to approval by the Federal Energy Regulatory Commission (FERC),
the MVP is expected to be in-service during the fourth quarter of 2018.
Mountain Valley Pipeline, LLC began the FERC pre-filing process in
October 2014 and recently held a series of 14 community open houses
along the proposed route in West Virginia and Virginia. In addition,
several alternative routes are currently being evaluated in order to
continuously improve and strengthen the proposed route by ensuring the
least overall impact on landowners, the environment, and cultural
resources. For maps and more information, visit www.mountainvalleypipeline.info.
About WGL:
WGL (NYSE-WGL), headquartered in Washington, D.C., is a leading source
for clean, efficient and diverse energy solutions. With activities in 32
states and the District of Columbia, WGL consists of Washington Gas, WGL
Energy, WGL Midstream and Hampshire Gas. WGL Energy delivers a full
ecosystem of energy offerings including natural gas, electricity, green
power, carbon reduction, distributed generation and energy efficiency
provided by WGL Energy Services, Inc. (formerly Washington Gas Energy
Services, Inc.), WGL Energy Systems, Inc. (formerly Washington Gas
Energy Systems, Inc.) and WGSW, Inc. WGL provides options for natural
gas, electricity, green power and energy services, including generation,
storage, transportation, distribution, supply and efficiency. Our
calling as a company is to make energy surprisingly easy for our
employees, our community and all our customers. Whether you are a
homeowner or renter, small business or multinational corporation, state
and local or federal agency, WGL is here to provide Energy Answers. Ask
Us. For more information, visit us at www.wgl.com.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and transmission.
EQT is the general partner and significant equity owner of EQT Midstream
Partners, LP. With more than 125 years of experience, EQT continues to
be a leader in the use of advanced horizontal drilling technology –
designed to minimize the potential impact of drilling-related activities
and reduce the overall environmental footprint. Through safe and
responsible operations, the Company is committed to meeting the
country’s growing demand for clean-burning energy, while continuing to
provide a rewarding workplace and enrich the communities where its
employees live and work. Company shares are traded on the New York Stock
Exchange as EQT. Visit EQT Corporation at www.EQT.com.
About EQT Midstream Partners:
EQT Midstream Partners, LP is a growth-oriented limited partnership
formed by EQT Corporation to own, operate, acquire, and develop
midstream assets in the Appalachian Basin. The Partnership provides
midstream services to EQT Corporation and third-party companies through
its strategically located transmission, storage, and gathering systems
that service the Marcellus and Utica regions. The Partnership owns 700
miles and operates an additional 200 miles of FERC-regulated interstate
pipelines; and also owns more than 1,600 miles of high- and low-pressure
gathering lines. Visit EQT Midstream Partners, LP at www.eqtmidstreampartners.com.
About NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with
consolidated revenues of approximately $17.0 billion, approximately
44,900 megawatts of generating capacity, which includes megawatts
associated with noncontrolling interests related to NextEra Energy
Partners, LP (NYSE: NEP), and approximately 13,800 employees in 27
states and Canada as of year-end 2014. Headquartered in Juno Beach,
Fla., NextEra Energy's principal subsidiaries are Florida Power & Light
Company, which serves approximately 4.7 million customer accounts in
Florida and is one of the largest rate-regulated electric utilities in
the United States, and NextEra Energy Resources, LLC, which, together
with its affiliated entities, is the world’s largest generator of
renewable energy from the wind and sun. Through its subsidiaries,
NextEra Energy generates clean, emissions-free electricity from eight
commercial nuclear power units in Florida, New Hampshire, Iowa and
Wisconsin. NextEra Energy has been recognized often by third parties for
its efforts in sustainability, corporate responsibility, ethics and
compliance, and diversity, and has been ranked in the top 10 worldwide
for innovativeness and community responsibility as part of Fortune’s
2015 list of “World's Most Admired Companies.” For more information
about NextEra Energy companies, visit these websites: www.NextEraEnergy.com,
www.FPL.com,
www.NextEraEnergyResources.com.
About Vega Energy Partners:
Vega Energy Partners, Ltd. (Vega) is a privately held company located in
Houston, Texas. Through its predecessor companies, Vega and its
principals have been engaged in the management, optimization, and
development of natural gas assets for over 25 years. Today, Vega focuses
on structuring solutions for its customers, which include producers,
midstream companies, utilities, LNG exporters, large end-users, and
retail aggregators. These solutions include natural gas infrastructure
development, asset optimization, and physical commodity management
services.
Mountain Valley Pipeline, LLC 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
Mountain Valley Pipeline (MVP) and joint venture, such as the projected
length and pipeline diameter of the MVP; the EQT affiliate to own and/or
operate the MVP; the MVP’s expected interconnections with facilities and
pipelines; existing customer commitments; the timing of development and
construction for the MVP; the estimated cost of MVP; and the expected
in-service date for the MVP. 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 MVP 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
projects and other 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, land
owners, 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 which 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.
