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OilMonster

Natural Gas January 10, 2019 01:00:13 AM

Mountain Valley Pipeline Says Expansion Will Not Cause Excess Natural Gas Supply

Anil
Mathews
OilMonster Author
The project would connect to the mainline of the Mountain Valley pipeline near Chatham, Virginia, and extend to delivery points in Rockingham and Alamance counties, North Carolina.
Mountain Valley Pipeline Says Expansion Will Not Cause Excess Natural Gas Supply

SEATTLE (Oil Monster): Mountain Valley Pipeline told federal regulators it was not overbuilding as it defended its MVP Southgate natural gas pipeline expansion from protests by two North Carolina agencies and a coalition of environmental groups.

Mountain Valley said in a Tuesday motion filed with the Federal Energy Regulatory Commission that the project is designed to meet growing gas demand in central North Carolina and southern Virginia.

"The project will not create excess gas supply," the pipeline developer wrote. "The project will provide natural gas transportation capacity and access to new supplies in the Marcellus and Utica shale regions to meet demand in the Southeast."

Mountain Valley was responding to protests by the North Carolina Utilities Commission, the North Carolina Department of Environmental Quality and groups led by Appalachian Mountain Advocates. Among other issues they raised, these parties said the rates proposed by the company were not properly supported, the project did not seem to be in the public interest and the project would result in too much pipeline infrastructure in the region.

"The Southgate project would create an excess supply of natural gas," the North Carolina Department of Environmental Quality said in a letter dated December 10, 2018.

Mountain Valley has applied to FERC for a certificate of public necessity for the expansion project, which is supported by a firm gas transportation service contract of 300,000 Dt/d with SCANA utility PSNC Energy. Mountain Valley asked the commission to authorize the project by December 1, 2019, in order to meet its target in-service date of November 1, 2020, as part of an agreement with the customer.

Construction on the nearly 73-mile MVP Southgate pipeline is expected to begin in the first quarter of 2020. It will be operated by EQM Midstream Partners.

The project would connect to the mainline of the Mountain Valley pipeline near Chatham, Virginia, and extend to delivery points in Rockingham and Alamance counties, North Carolina. Facilities would include new 24- and 16-inch diameter pipeline and a 28,915-horsepower compressor station (CP19-14).

Mountain Valley is a joint venture of EQM Midstream, NextEra Energy, Consolidated Edison, RGC Resources and WGL Holdings.

Courtesy: www.spglobal.com

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