Equitrans used its first quarter earnings report to update the market on the Mountain Valley Pipeline schedule and Southgate extension.
In March and April 2021, respectively, the Virginia Department of Environmental Quality and the West Virginia Department of Environmental Protection submitted requests to the Army Corps seeking to extend the 120-day review period to evaluate the respective 401 water quality certification applications. Accordingly, the company is now targeting a full in-service date during the summer of 2022 at a total project cost of approximately $6.2bn.
As of March 31, 2021, Equitrans funded approximately $2.3bn and, based on the total project cost estimate, expects to fund a total of approximately $3.1bn and to have an approximate 47.8% ownership interest in MVP as well as operating the pipeline.
Based on the adjustment to MVP’s targeted full in-service date and current expectations regarding timing of MVP Southgate permit approvals, ETRN is targeting commencing construction during 2022 and placing the project in-service during the spring of 2023.
The approximately 75-mile pipeline is designed to receive gas from MVP in Virginia for transport to new delivery points in Rockingham and Alamance Counties, North Carolina. With a total project cost estimate of approximately $450m to $500m, MVP Southgate is backed by a 300 million cubic feet (mmcf) per day firm capacity commitment from Dominion Energy North Carolina and, as designed, the pipeline has expansion capabilities that could provide up to 900 mmcf per day of total capacity. ETRN has a 47.2% ownership interest in MVP Southgate and will operate the pipeline.
Equitrans’ operating revenue for the first quarter was lower compared to the same quarter last year by $73.1m, primarily from the impact of deferred revenue and lower water services revenue. The reduction in operating revenue was partially offset by increased revenue from higher gathering minimum volume commitments (MVCs) and higher park and loan activity.
“We were ahead of our forecast for the first quarter, with strong results in multiple areas including gathered volume, seasonal park and loan activity, and delivered water volume,” said Diana M. Charletta, ETRN president and chief operating officer. “With this encouraging and positive start to the year, we are confident in our outlook for the remainder of 2021 and have increased our full-year financial guidance.”
For more information visit: www.equitransmidstream.com