More delays, cost increases for two East Coast natural gas pipelines

first_imgMore delays, cost increases for two East Coast natural gas pipelines FacebookTwitterLinkedInEmailPrint分享The Roanoke Times:The projected cost of building the Mountain Valley Pipeline has gone up by another half a billion dollars. And the expected completion date, most recently slated for mid-2020, has been pushed back to the end of that year.In an announcement Tuesday, Mountain Valley attributed the latest delay and revised cost estimate — now at between $5.3 billion and $5.5 billion — to “various legal and regulatory challenges.”When work began in February 2018, Mountain Valley said it would be done by the end of that year at a cost of $3.7 billion. Several delays and cost increases have been announced since then.As costs have risen steadily, some opponents have voiced hopes that investors will pull out of the joint venture, made up of five energy companies. But considering the amount of work that has already been completed on the pipeline’s route through West Virginia and Southwest Virginia, one financial analyst who has followed the project closely saw a “very low probability” of that happening.“I don’t think that EQM has any intention of giving up on this project, given how much capital has already been devoted,” said Josh Price, a senior energy analyst for Height Capital Markets, an investment banking firm in Washington, D.C.Still, construction has progressed faster than that of the Atlantic Coast Pipeline, a similar project to the east that was approved at the same time by FERC. Led by Dominion Energy, the Atlantic Coast project has also encountered legal resistance from environmental groups. The cost for that three-state pipeline has gone up by about $3 billion, to $7.75 billion, and construction is running two years behind schedule, with completion delayed until late 2021.More: Another delay, cost increase for Mountain Valley Pipelinelast_img read more