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EQT to extend $3.5bn Mountain Valley pipeline with MVP Southgate project

EBR Staff Writer Published 13 April 2018

EQT Midstream Partners has unveiled its plans to build a new 112.6km long interstate natural gas pipeline, called MVP Southgate in the US states of Virginia and North Carolina.

The MVP Southgate pipeline will essentially be an extension of the company’s $3.5bn Mountain Valley pipeline, which is a proposed underground natural gas pipeline of nearly 487.6km length, spanning from northwestern West Virginia to southern Virginia.

According to EQT Midstream, the MVP Southgate pipeline has been designed to source gas from the mainline of the Mountain Valley pipeline in Pittsylvania County, Virginia and supply it south to new delivery points in North Carolina’s Rockingham and Alamance Counties.

EQT Midstream Partners president and CEO Jerry Ashcroft said: “Today's announcement of the MVP Southgate project underscores the need for improved access to a low-cost, reliable supply of natural gas from the Appalachian Basin that will support the increasing demand for energy by consumers and industrial markets in the southeast United States.

"Our focus on the safe and responsible construction and operation of Mountain Valley Pipeline will continue into the planning and development of MVP Southgate.”

EQT Midstream, which will be the operator of MVP Southgate, said that the proposed pipeline is backed by a firm capacity commitment from PSNC Energy, a subsidiary of Scana.

MVP Southgate is expected to offer low-cost supply access to natural gas drawn from the Marcellus and Utica shale regions for service delivery to customers of PSNC Energy.

PSNC Energy president and chief operating officer Rusty Harris said: “PSNC Energy’s customers benefit from the company having supply diversity. This project will help ensure low costs for customers and enhance service reliability.”

The gas supplied by the MVP Southgate pipeline will also be provided to existing and new end-user markets across southern Virginia and central North Carolina, said EQT Midstream.

The proposed MVP Southgate pipeline, which is subject to approval from the Federal Energy Regulatory Commission (FERC), is planned to be placed into service in the fourth quarter of 2020.

EQT Midstream is partnered by NextEra US Gas Assets, Con Edison Transmission, WGL Midstream and RGC Midstream in the Mountain Valley pipeline project, which is expected to be commissioned by the end of this year.