Mountain Valley Pipeline, LLC, a joint venture between
affiliates of EQT Corporation (NYSE: EQT) and NextEra Energy, Inc.
(NYSE: NEE) today announced that a subsidiary of WGL Holdings, Inc.
(NYSE: WGL), WGL Midstream, has acquired a 7% ownership interest in
the joint venture, and a subsidiary of Vega Energy Partners, Ltd.,
Vega Midstream MVP LLC, has acquired a 3% interest. NextEra Energy
will hold a 35% interest; and as previously announced, EQT
Midstream Partners, LP (NYSE: EQM) is expected to assume EQT’s 55%
majority interest in the joint venture and to operate the proposed
Mountain Valley Pipeline.
“WGL Midstream’s agreement with Mountain Valley Pipeline helps
to address the growing transportation constraints facing natural
gas producers and, more importantly, offers critical supply
diversity to meet the increasing demand for natural gas in the
mid-Atlantic region and Southeast markets,” said WGL Chairman and
CEO, Terry D. McCallister. “As the need for natural gas continues
to increase in these fast growing markets, WGL is well positioned
with customized energy solutions to meet this growth through our
evolving business capabilities.”
As part of the agreement, WGL Midstream will be a shipper on the
proposed Mountain Valley Pipeline (MVP) – and has also committed to
buying a significant amount of natural gas at Transcontinental Gas
Pipeline Company’s (Transco) Zone 5 compressor station 165 in
Pittsylvania County, Virginia – a highly marketable trading area
along the East Coast.
“WGL has a major presence in this market and currently moves
significant volume on Transco’s mainline; therefore, securing them
as a joint venture partner validates the market’s need for
additional energy supply sources at station 165 – and also
reaffirms our commitment to provide a safe, reliable supply of
Appalachian-produced natural gas to regional markets in the
mid-Atlantic and Southeast United States,” stated Randy Crawford,
senior vice president, EQT Corporation; and chief operating
officer, EQT Midstream Partners.
With its connection to the existing Equitrans system in West
Virginia, the MVP is specifically designed to address
infrastructure constraints associated with the rapid development of
natural gas from the Marcellus and Utica shale plays, while more
importantly offering critical supply diversity to meet the
increasing demand for natural gas across the Southeast. The MVP is
expected to provide at least 2 Bcf per day of firm transmission
capacity and has secured commitments at 20-year terms for this
minimum capacity amount. The estimated 300-mile long pipeline is
currently targeted at 42” in diameter, with an approximate project
cost of $3-$3.5 billion.
“The addition of WGL Midstream continues to support the overall
importance of this project to the region," said TJ Tuscai,
president, NextEra US Gas Assets. “This project will support
economic growth and energy supply diversity in the Southeast and
mid-Atlantic for years to come.”
Subject to approval by the Federal Energy Regulatory Commission
(FERC), the MVP is expected to be in-service during the fourth
quarter of 2018. Mountain Valley Pipeline, LLC began the FERC
pre-filing process in October 2014 and recently held a series of 14
community open houses along the proposed route in West Virginia and
Virginia. In addition, several alternative routes are currently
being evaluated in order to continuously improve and strengthen the
proposed route by ensuring the least overall impact on landowners,
the environment, and cultural resources. For maps and more
information, visit www.mountainvalleypipeline.info.
About EQT Corporation:EQT
Corporation is an integrated energy company with emphasis on
Appalachian area natural gas production, gathering, and
transmission. EQT is the general partner and significant equity
owner of EQT Midstream Partners, LP. With more than 125 years of
experience, EQT continues to be a leader in the use of advanced
horizontal drilling technology – designed to minimize the potential
impact of drilling-related activities and reduce the overall
environmental footprint. Through safe and responsible operations,
the Company is committed to meeting the country’s growing demand
for clean-burning energy, while continuing to provide a rewarding
workplace and enrich the communities where its employees live and
work. Company shares are traded on the New York Stock Exchange as
EQT. Visit EQT Corporation at www.EQT.com.
About EQT Midstream
Partners:EQT Midstream Partners, LP is a growth-oriented
limited partnership formed by EQT Corporation to own, operate,
acquire, and develop midstream assets in the Appalachian Basin. The
Partnership provides midstream services to EQT Corporation and
third-party companies through its strategically located
transmission, storage, and gathering systems that service the
Marcellus and Utica regions. The Partnership owns 700 miles and
operates an additional 200 miles of FERC-regulated interstate
pipelines; and also owns more than 1,600 miles of high- and
low-pressure gathering lines. Visit EQT Midstream Partners, LP at
www.eqtmidstreampartners.com.
About NextEra Energy,
Inc.NextEra Energy, Inc. (NYSE: NEE) is a leading clean
energy company with consolidated revenues of approximately $17.0
billion, approximately 44,900 megawatts of generating capacity,
which includes megawatts associated with noncontrolling interests
related to NextEra Energy Partners, LP (NYSE: NEP), and
approximately 13,800 employees in 27 states and Canada as of
year-end 2014. Headquartered in Juno Beach, Fla., NextEra Energy's
principal subsidiaries are Florida Power & Light Company, which
serves approximately 4.7 million customer accounts in Florida and
is one of the largest rate-regulated electric utilities in the
United States, and NextEra Energy Resources, LLC, which, together
with its affiliated entities, is the world’s largest generator of
renewable energy from the wind and sun. Through its subsidiaries,
NextEra Energy generates clean, emissions-free electricity from
eight commercial nuclear power units in Florida, New Hampshire,
Iowa and Wisconsin. NextEra Energy has been recognized often by
third parties for its efforts in sustainability, corporate
responsibility, ethics and compliance, and diversity, and has been
ranked in the top 10 worldwide for innovativeness and community
responsibility as part of Fortune’s 2015 list of “World's Most
Admired Companies.” For more information about NextEra Energy
companies, visit these websites: www.NextEraEnergy.com,
www.FPL.com, www.NextEraEnergyResources.com.
About WGL:WGL (NYSE-WGL),
headquartered in Washington, D.C., is a leading source for clean,
efficient and diverse energy solutions. With activities in 32
states and the District of Columbia, WGL consists of Washington
Gas, WGL Energy, WGL Midstream and Hampshire Gas. WGL Energy
delivers a full ecosystem of energy offerings including natural
gas, electricity, green power, carbon reduction, distributed
generation and energy efficiency provided by WGL Energy Services,
Inc. (formerly Washington Gas Energy Services, Inc.), WGL Energy
Systems, Inc. (formerly Washington Gas Energy Systems, Inc.) and
WGSW, Inc. WGL provides options for natural gas, electricity, green
power and energy services, including generation, storage,
transportation, distribution, supply and efficiency. Our calling as
a company is to make energy surprisingly easy for our employees,
our community and all our customers. Whether you are a homeowner or
renter, small business or multinational corporation, state and
local or federal agency, WGL is here to provide Energy Answers. Ask
Us. For more information, visit us at www.wgl.com.
About Vega Energy
Partners:Vega Energy Partners, Ltd. (Vega) is a
privately held company located in Houston, Texas. Through its
predecessor companies, Vega and its principals have been engaged in
the management, optimization, and development of natural gas assets
for over 25 years. Today, Vega focuses on structuring solutions for
its customers, which include producers, midstream companies,
utilities, LNG exporters, large end-users, and retail aggregators.
These solutions include natural gas infrastructure development,
asset optimization, and physical commodity management services. For
more information, visit us at www.vegaenergy.com.
Mountain Valley Pipeline, LLC Cautionary
StatementsDisclosures in this news release contain certain
forward-looking statements that do not relate strictly to
historical or current facts and are forward-looking. Without
limiting the generality of the foregoing, forward-looking
statements contained in this news release specifically include the
expectations of plans, strategies, objectives and growth, and
anticipated financial and operational performance of Mountain
Valley Pipeline, LLC, including guidance regarding the proposed
Mountain Valley Pipeline (MVP) and joint venture, such as the
projected length and pipeline diameter of the MVP; the EQT
affiliate to own and/or operate the MVP; the MVP’s expected
interconnections with facilities and pipelines; existing customer
commitments; the timing of development and construction for the
MVP; the estimated cost of MVP; and the expected in-service date
for the MVP. The forward-looking statements included in this news
release are subject to risks and uncertainties that could cause
actual results to differ materially from projected results.
Accordingly, investors should not place undue reliance on
forward-looking statements as a prediction of actual results.
Mountain Valley Pipeline, LLC has based these forward-looking
statements on current expectations and assumptions about future
events. While Mountain Valley Pipeline, LLC considers these
expectations and assumptions to be reasonable, they are inherently
subject to significant business, economic, competitive, regulatory,
and other risks and uncertainties, most of which are difficult to
predict and are beyond its control. The risks and uncertainties
that may affect the operations, performance, and results of MVP and
forward-looking statements include, but are not limited to:
The business, financial condition, results of operations and
prospects could suffer if Mountain Valley Pipeline, LLC does not
proceed with projects under development or is unable to complete
the construction of, or capital improvements to its facilities on
schedule or within budget.
The ability to complete construction of, and capital improvement
projects and other facilities on schedule and within budget may be
adversely affected by escalating costs for materials and labor and
regulatory compliance, inability to obtain or renew necessary
licenses, rights-of-way, permits or other approvals on acceptable
terms or on schedule, disputes involving contractors, labor
organizations, land owners, governmental entities, environmental
groups, Native American and aboriginal groups, and other third
parties, negative publicity, transmission interconnection issues,
and other factors. If any development project or construction or
capital improvement project is not completed, is delayed or is
subject to cost overruns, certain associated costs may not be
approved for recovery or recoverable through regulatory mechanisms
that may otherwise be available, and Mountain Valley Pipeline, LLC
could become obligated to make delay or termination payments or
become obligated for other damages under contracts, could
experience the loss of tax credits or tax incentives, or delayed or
diminished returns, and could be required to write-off all or a
portion of its investment in the project. Any of these events could
have a material adverse effect on Mountain Valley Pipeline, LLC’s
business, financial condition, results of operations and
prospects.
Mountain Valley Pipeline, LLC may face risks related to project
siting, financing, construction, permitting, governmental approvals
and the negotiation of project development agreements that may
impede its development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for
licenses and permits from various local, state, federal and other
regulatory authorities and abide by their respective conditions.
Should Mountain Valley Pipeline, LLC be unsuccessful in obtaining
necessary licenses or permits on acceptable terms, should there be
a delay in obtaining or renewing necessary licenses or permits or
should regulatory authorities initiate any associated
investigations or enforcement actions or impose related penalties
or disallowances on Mountain Valley Pipeline, LLC, Mountain Valley
Pipeline, LLC’s business, financial condition, results of
operations and prospects could be materially adversely affected.
Any failure to negotiate successful project development agreements
for new facilities with third parties could have similar
results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities
and other facilities are subject to many operational risks.
Operational risks could result in, among other things, lost
revenues due to prolonged outages, increased expenses due to
monetary penalties or fines for compliance failures, liability to
third parties for property and personal injury damage, a failure to
perform under applicable sales agreements and associated loss of
revenues from terminated agreements or liability for liquidated
damages under continuing agreements. The consequences of these
risks which could have a material adverse effect on Mountain Valley
Pipeline, LLC’s business, financial condition, results of
operations and prospects.
Uncertainties and risks inherent in operating and maintaining
Mountain Valley Pipeline, LLC's facilities include, but are not
limited to risks associated with facility start-up operations, such
as whether the facility will achieve projected operating
performance on schedule and otherwise as planned:
Mountain Valley Pipeline, LLC’s business, financial condition,
results of operations and prospects can be materially adversely
affected by weather conditions, including, but not limited to, the
impact of severe weather.
Threats of terrorism and catastrophic events that could result
from terrorism, cyber-attacks, or individuals and/or groups
attempting to disrupt Mountain Valley Pipeline, LLC’s business, or
the businesses of third parties, may materially adversely affect
Mountain Valley Pipeline, LLC’s business, financial condition,
results of operations and prospects.
Any forward-looking statement speaks only as of the date on
which such statement is made and Mountain Valley Pipeline, LLC does
not intend to correct or update any forward-looking statement,
whether as a result of new information, future events or
otherwise.
EQT analyst inquiries:Patrick Kane, Chief Investor
Relations Officer , 412-553-7833pkane@eqt.comorEQT Midstream
Partners analyst inquiries:Nate Tetlow, Investor Relations
Director, 412-553-5834ntetlow@eqt.comorEQT and Mountain Valley
Pipeline media inquiries:Natalie Cox, Corporate Director,
Communications, 412-395-3941ncox@eqt.comorNextEra Energy media
contact:Media Line: 561-694-4442orWGL Holdings,
Inc.News Media:Ruben Rodriguez,
202-624-6620orFinancial Community:Douglas Bonawitz,
202-624-6129
Wgl (NYSE:WGL)
Historical Stock Chart
From Mar 2024 to Apr 2024
Wgl (NYSE:WGL)
Historical Stock Chart
From Apr 2023 to Apr 2024