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Cost of Mountain Valley gas pipeline project rises to US$4.6bn (US)

Mountain Valley Pipeline (MVP), a US-based joint venture (JV) of EQT Midstream Partners, NextEra, Con Edison, WGL Midstream and RGC Midstream, has increased the overall project cost estimate for the 1.9 bcf/d (19.6 bcm/year) Mountain Valley gas pipeline from US$3.7bn to US$4.6bn (+24%). Half of the increase is due to extended periods of work stoppage that occurred in August 2018. In addition, federal appeals court invalidated two permits and the Federal Energy Regulatory Commission (FERC) ordered to halt works. The remaining drivers behind the costs increase are unusual rainfall and unanticipated construction costs overruns.



The FERC cleared MVP to resume construction in late August 2018. Despite lengthy project delays and material cost increases, MVP hopes to complete more than 50% of the project by the end of 2018. Once fully operational (during the fourth quarter 2019), the pipeline will run from northwestern West Virginia down to southern Virginia. It will ship gas from Wetzel County (West Virginia) to Transcontinental Gas pipeline's compressor station in Pittsylvania County (Virginia).