NextEra Energy Inc, the world’s largest producer of wind and solar energy, swung to a loss in the fourth quarter, dented by an impairment charge of $1.2 billion on its investments in the Mountain Valley natural gas pipeline.
Mountain Valley pipeline, which stretches from West Virginia to Virginia, is one of the several oil and gas pipelines delayed in recent years by regulatory and legal fights with states and environmental groups that found problems with permits issued.
Most recently, federal energy regulators did not approve a request to ramp up construction of a part of the pipeline, which is expected to transport 2 billion cubic feet per day of gas from the Marcellus/Utica shale formation in West Virginia, Pennsylvania and Ohio to Virginia.
The Natgas pipeline, owned by units of Equitrans Midstream Corp and NextEra, among others, is currently estimated to be in service by late 2021.
NextEra attributed its writedown to legal and regulatory challenges, saying the project is facing “substantial delays in reaching commercial operation and increased costs associated with those delays”.
The company posted a net loss of $5 million in the three months ended 31 December, from an income of $975 million a year earlier.
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