Mountain Valley Pipeline Announces Billion Dollar Increase In Project Cost

WEST VIRGINIA (WOAY) – Mountain Valley Pipeline announced that it has increased its overall project cost estimate to $4.6 billion.

Approximately half of the cost increase is due to extended periods of work stoppage during August that triggered ongoing contractual charges and schedule changes – with the balance relating to extraordinary rainfall events that continued through the summer, recent hurricane preparedness actions that interrupted full-construction activities, and certain unanticipated construction cost overruns.

The Federal Energy Regulatory Commission cleared MVP to restart full construction on August 29, 2018, with exception of approximately 25 miles of the route. Based on the current construction plan, MVP expects to complete more than 50% of the pipeline by year-end. The halting of construction due to court challenges from environmental opponents have caused lengthy project delays, material cost increases, and burdens for local communities and agencies; and have also impeded the delivery of low-cost energy resources to consumers and other end-user markets.

Along with the work stoppage, significant costs have been incurred to enhance and repair erosion and sediment control devices due to unprecedented rainfall in West Virginia and Virginia during the past several months.
With ongoing evaluation of its construction plan, MVP continues to target a full in-service during the fourth quarter 2019. MVP is committed to the safety of its communities, to the preservation and protection of the environment, and to the continued responsible construction of this important natural gas infrastructure project that will serve homes and business in the mid-Atlantic and Southeast United States.

Currently there is a stay in a small part of the project due to Summers County Circuit Court.

A hearing for the stay has been set for October 23.

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