WGL Midstream Acquires Additional 3 Percent Interest in Mountain Valley Pipeline
October 31 2016 - 8:30AM
Business Wire
WGL Midstream, a subsidiary of WGL Holdings, Inc. (NYSE: WGL),
today announced that it has increased its ownership interest in
Mountain Valley Pipeline, LLC (“Mountain Valley”), by acquiring all
of Vega Energy’s 3 percent interest in the joint venture. The other
members of Mountain Valley include EQT Midstream Partners, LP
(NYSE: EQM), a significant interest owner and operator of the
proposed Mountain Valley Pipeline, and affiliates of NextEra
Energy, Inc. (NYSE: NEE), Con Edison, Inc. (NYSE: ED), and RGC
Resources, Inc. (NASDAQ: RGCO). WGL Midstream now owns a 10 percent
interest in Mountain Valley, and its estimated aggregate investment
is expected to be approximately $326 million.
In October 2015, Mountain Valley filed an application with the
Federal Energy Regulatory Commission (FERC) seeking authorization
to build the Mountain Valley Pipeline (“MVP”), an approximately
300-mile interstate natural gas transmission pipeline designed to
provide timely, cost-effective access to the growing supply of
natural gas for use by local distribution companies, industrial
users, and power generation facilities in the Mid-Atlantic,
Southeast, and Appalachian regions of the United States. The MVP
would transport the abundant supply of Marcellus and Utica natural
gas, commencing in Wetzel County, West Virginia and traversing
south through 11 counties in West Virginia, southeast through six
counties in Virginia, and ending in Pittsylvania County,
Virginia.
"This acquisition represents WGL's continued commitment to drive
strong shareholder value through asset-based investments which
provide energy answers to our customers," said Terry McCallister,
Chairman and CEO of WGL. "Through our expanding portfolio of
pipeline interests, our location at the crossroads of the region's
supply and demand, and our diverse and growing customer base, WGL
is well positioned to provide the energy services that support the
growing market for natural gas.”
The MVP is expected to provide at least 2 Bcf per day of firm
transmission capacity and has secured 20-year commitments for the
full minimum capacity amount of 2 Bcf per day. Subject to approval
by the FERC, the MVP continues to target an in-service date in late
2018. For more information, visit
www.mountainvalleypipeline.info.
About WGL Midstream
WGL Midstream meets the expanding demand for natural gas through
investment, management, development and optimization of natural gas
storage and transportation projects. WGL Midstream’s customers and
counterparties include producers, utilities, LNG exporters, local
distribution companies, power generators, wholesale energy
suppliers, pipelines and storage facilities.
About WGL
WGL (NYSE: WGL), headquartered in Washington, D.C., is a leading
source for clean, efficient and diverse energy solutions. With
activities and assets across the U.S., WGL consists of Washington
Gas, WGL Energy, WGL Midstream and Hampshire Gas. WGL provides
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.
Forward-Looking Statements
This press release includes forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
with respect to WGL’s investment in Mountain Valley and the
specifications, strategies, operations and performance of Mountain
Valley and the MVP, such as: the projected length and pipeline
diameter of the MVP; the entities that are expected 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 estimated investment of WGL in Mountain Valley; the
expected in-service date for the MVP and other future expectations.
Forward-looking statements are typically identified by words such
as, but not limited to, “estimates,” “expects,” “anticipates,”
“intends,” “believes,” “plans,” “forecasts,” and similar
expressions, or future or conditional verbs such as “will,”
“should,” “would,” and “could.” Although we believe such
forward-looking statements are based on reasonable assumptions, we
cannot give assurance that every objective will be achieved.
Forward-looking statements speak only as of today, and we assume no
duty to update them. Factors that could cause actual results to
differ materially from those expressed or implied include, but are
not limited to, whether Mountain Valley proceeds with projects
under development and is able to complete the construction of MVP,
and capital improvements to its facilities, on schedule and within
budget; the ability of MVP to recover costs through regulatory
mechanisms; Mountain Valley’s ability to obtain governmental
approvals and permits on time and on acceptable terms; risks
related to project siting, financing, construction and the
negotiation of project development agreements; risks inherent in
operating and maintaining Mountain Valley’s facilities, including
whether the facility will achieve projected operating performance
on schedule and otherwise as planned; risks associated with weather
conditions, including severe weather; risks relating to terrorism
or other catastrophic events; and the factors discussed under the
“Risk Factors” heading in our most recent annual report on Form
10-K and other documents filed with or furnished to the Securities
and Exchange Commission.
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version on businesswire.com: http://www.businesswire.com/news/home/20161031005163/en/
WGL MidstreamNews Media:Bernie Tylor,
202-624-6778orFinancial Community:Douglas Bonawitz,
202-624-6129
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