MVP says gas pipe project is mechanically complete, seeks FERC OK by June 11

Mountain Valley Pipeline June 10 informed the US Federal Energy Regulatory Commission that the 304-mile, 2 Bcf/d natural gas pipeline facilities are "mechanically complete" and asked the regulator for in-service authorization by June 11.

Once in service, the long-anticipated project will provide another outlet for Appalachian Basin gas supplies.

In a filing with FERC, MVP said all hydrostatic testing is complete, as are welding, testing, cleaning, drying and tie-ins. Final segments of the project were being purged and packed with gas, it said.

The developer also emphasized a market need for FERC's decision.

"Multiple shippers have executed agreements to commence transporting volumes using the project facilities beginning the day after the project declares in-service, which further heightens the need for prompt authorization to meet market demands," the developer told FERC.

Safety requirements

A closely watched regulatory matter has been the project's progress on meeting requirements of a consent agreement with safety regulators.

The Pipeline and Hazardous Materials Safety Administration on Oct. 3 reached a consent agreement with operator Equitrans Midstream on integrity inspections to address concerns over the pipeline's coating and corrosion. That followed warnings from local groups worried about safety risks from pipeline stored for years in the field, risks of corrosion and dangers associated with land movement along the route's steep slopes.

MVP said June 10 it has satisfied all aspects of the consent order with PHMSA that are needed to start service. PHMSA did not immediately reply to a request for comment on the status.

Multiple nonprofit organizations, along with some elected officials and local residents, have argued it was premature for FERC to allow in-service.

In a comment June 10 at FERC, the group Protect Our Water, Heritage, Rights (POWHR) Coalition again asked FERC's director of the Office of Energy Projects to deny the request to start service by June 11.

"To grant this request on a 24-hour turnaround, while reasonable concerns remain about the project's ability to operate safely, will further erode public trust and deliver a final injustice to directly-impacted community members who have engaged in this process in good faith," POWHR wrote. It complained of a lack of transparency and worried that local emergency services would be unequipped to handle a catastrophic explosion.

Environmental groups also have combatted the notion that rehabilitation and restoration of affected areas were far enough along for FERC to grant the in-service request.

Project history

First proposed in 2015, the project's timeline was stretched for years amid legal challenges that gained traction in the US Court of Appeals for the 4th Circuit, which several times found federal agency permits to be inadequate.

Congress then essentially shielded the project from legal challenges through a provision of debt ceiling legislation enacted last June, enabling forward construction to resume.

Analysts with S&P Global Commodity Insights have estimated the pipeline would raise the Northeast's production ceiling by 600 MMcf/d, although the ceiling would reach the full 2 Bcf/d of the pipeline's capacity if Transcontinental Gas Pipe Line's 1.6 Bcf/d Southeast Supply Enhancement advances to operation.