XM does not provide services to residents of the United States of America.

US Mountain Valley natural gas pipeline begins operations

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>UPDATE 2-US Mountain Valley natural gas pipeline begins operations</title></head><body>

Adds background

June 14 (Reuters) -U.S. natural gas pipeline venture Mountain Valley Pipeline said its long-delayed pipe from West Virginia to Virginia entered service on Friday.

The $7.85 billion Mountain Valley project was the biggest gas pipeline under construction in the U.S. Northeast. It has encountered numerous regulatory and court fights that have stopped work several times since construction began in 2018.

The pipe, which unlocks gas supplies from Appalachia, the nation's biggest shale gas-producing region, needed a bill from the U.S. Congress that was signed into law by President Joe Biden and help from the Supreme Court before it could restart construction in 2023.

The pipe is now available for interruptible or short-term firm transportation service until long-term firm capacity obligations commence on July 1, U.S. gas pipeline company Equitrans Midstream ETRN.N, the lead partner in the Mountain Valley venture, said in a statement.

The pipeline is designed to carry up to 2 billion cubic feet per day (bcfd) of gas from the Marcellus and Utica shale production regions in Pennsylvania, Ohio and West Virginia to local distribution companies, power generation facilities, industrial users and others in growing demand markets in the U.S. Mid-Atlantic and Southeast, Equitrans said.

One billion cubic feet is enough gas to supply about 5 million U.S. homes for a day.

Energy analysts, however, noted it could still take months for Mountain Valley to reach its full capacity due to ongoing downstream pipeline constraints.

The pipeline had faced legal challenges and opposition from local community and environmental groups who say it will exacerbate fossil-fuel driven climate change.

“Allowing this 303-mile disaster to move forward is a slap in the face to the communities who have fought tirelessly over the last decade to protect their land and water," Sierra Club Deputy Chief Energy Officer Patrick Grenter said in a statement this week.

"This pipeline has already marred private property and damaged countless water resources, and the gas it will transport will worsen the climate crisis. We will continue to fight back against the reckless expansion of dangerous, unnecessary fracked gas pipelines.”

When Mountain Valley started construction in February 2018, Equitrans, the primary interest owner in the joint venture, estimated the project would cost about $3.5 billion and enter service by late 2018.

The Mountain Valley project is owned by units of Equitrans, NextEra Energy NEE.N, Consolidated Edison ED.N, AltaGas ALA.TO and RGC Resources RGCO.O. Equitrans will operate the pipeline.

Analysts said they expect EQT EQT.N, the nation's biggest gas producer, to move the most gas through Mountain Valley.

Earlier this week, EQT's CEO Toby Rice said EQT was starting to increase output after cutting back earlier in the year when futures prices NGc1 fell to 3-1/2-year lows in February and March.

EQT agreed in March to buy Equitrans in an all-stock deal, which is expected to close in the fourth quarter. That would bring back the pipeline business that EQT spun off in 2018.

Reporting by Kavya Balaraman and Rahul Paswan in Bengaluru and Scott DiSavino in New York; Editing by Chizu Nomiyama and Aurora Ellis


Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.