Today, Equitrans Midstream Corp. announced it is making headway to increase natural gas connectivity in the Appalachian Basin. Accordingly, the Company already has management evaluating shipper interest received during a recent open season.
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Equitrans on increasing natural gas connectivity
Worth noting, this binding open season focused on Equitrans’ transmission system. Thus, it would increase shipper access to downstream markets in the Midwest and Gulf Coast. Specifically, the Company would achieve this through existing delivery interconnects with interstate pipelines in Clarington, OH.
Therefore, management keeps evaluating the shipper requests. In this sense, Equitrans reported, “there were several.” Particularly, the Company’s COO, Diana Charletta, shared that Equitrans is also evaluating the costs to complete the expansion and the project economics.
In fact, “there is still some back and forth with those shippers as far as where they want to come from and where they want to go;” Charletta added during the second-quarter earnings call with investors. “So, we’re working through all of that right now with shippers, and we should have final results in the next couple of months.”
Meanwhile, as NGI reported today, Equitrans’ on the long-delayed Mountain Valley Pipeline (MVP) continues.
Accordingly, Charletta said crews worked throughout the spring on all approved upland areas for MVP. Besides, she added, they are currently on track to complete work in the fall.
Other projects and targets
Consequently, once the upland work finishes, the remaining work would include about 10 miles related to water crossings, added Equitrans. Additionally, it would also consist of eight miles in areas in and around the Jefferson National Forest.
According to NGI, an environmental assessment for MVP would be published by the middle of August. Thus, Charletta said the permitting timelines for the Federal Energy Regulatory Commission and the U.S. Army Corps of Engineers remain consistent; particularly with the summer 2022 service. Worth noting, the total project cost estimate also remains around $6.2 billion.
Lastly, in Equitrans investors call, Charletta also took the time to provide some insight into plans to reach net-zero carbon emissions by 2050. In fact, the midstreamer recently announced that MVP would purchase carbon offsets; specifically for the emissions in its first ten years of operations.
On the other hand, the construction of the MVP Southgate Project could start in 2022. In fact, the 75-mile expansion will help Equitrans receive gas from MVP in Virginia; particularly for transport to new delivery points in North Carolina’s Rockingham and Alamance counties. Equitrans also expects in-service for spring 2023.
