WGL and Vega Midstream acquire interest in Mountain Valley Pipeline project

WGL Midstream and Vega Midstream MVP have acquired minority ownership interest in Mountain Valley Pipeline project, which is expected to cost $3bn to $3.5bn.

Mountain Valley Pipeline is being developed jointly by the affiliates of EQT and NextEra Energy.

WGL Midstream has acquired a 7% ownership interest and Vega Midstream bought a 3% stake.

NextEra Energy will hold a 35% interest; and EQT Midstream Partners is expected to assume 55% interest in the joint venture and to operate the proposed 300-mile pipeline.

WGL Midstream will serve a shipper on the proposed project and will also buy a significant amount of natural gas at Transcontinental Gas Pipeline Company’s Zone 5 compressor station 165 in Pittsylvania County, Virginia.

WGL chairman and CEO Terry McCallister said: "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."

The pipeline is expected to start services in the fourth quarter of 2018 after securing approval from the US Federal Energy Regulatory Commission.

WGL said the proposed pipeline may face risks associated to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements that may impede its development and operating activities.

The partners are required to apply for licenses and permits from several local, state, federal and other regulatory authorities and accept their respective conditions.