Equitrans faces further setbacks and increased costs with Mountain Valley gas pipeline
(UI) — Equitrans Midstream has announced a setback in the timeline for the completion of its Mountain Valley natural gas pipeline, stretching the estimated finish from the first quarter to the second quarter, Reuters reported.
Factors contributing to this delay include adverse weather conditions experienced in January. Additionally, the projected cost for the project has been revised upwards to approximately $7.57 billion-$7.63 billion, marking a significant increase from the previous estimate of about $7.2 billion.
According to Reuters, during its fourth earnings report, Equitrans discussed the challenges facing the Mountain Valley project, which has encountered multiple regulatory and legal hurdles since its construction commenced in 2018. Despite beating estimates in its earnings, Equitrans CEO Diana Charletta highlighted the adverse impact of weather conditions on construction productivity, resulting in prolonged delays.
The Mountain Valley pipeline, crucial for accessing gas supplies from the Appalachian region, has faced delays and cost overruns since its inception. Originally slated for completion by late 2018 with an estimated cost of $3.5 billion, the 303-mile project has experienced significant setbacks.
Owned by units of Equitrans, NextEra Energy, Consolidated Edison, AltaGas, and RGC Resources, the project's construction is led by Equitrans, which holds a roughly 49% interest and will operate the pipeline. In a separate announcement, Equitrans Executive Chairman Thomas Karam revealed ongoing discussions with third parties regarding potential strategic transactions, emphasizing that the outcome remains uncertain despite engagement with external advisors.
This story was originally published by Reuters.
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