Pipeline projects have been delayed due to significant opposition from environmentalists and regulatory bodies. The two largest under construction, Atlantic Coast Pipeline (ACP; mid-2022) and Mountain Valley Pipeline (MVP; early 2021), have both had in-service dates postponed.
Updated: On Monday, June 15, 2020, the U.S. Supreme Court upheld a crucial permit for the Atlantic Coast Pipeline, stating the U.S. Forest Service has the authority to permit the construction of ACP through the Appalachian National Scenic Trail in Virginia.
Appalachian Basin
According to the EIA’s June STEO report, Lower-48 gas production may take several years to recover to the 92.2 Bcf/d level seen in 2019. But when gas production in Appalachia does increase, it may need additional outbound pipeline capacity to dispose of the gas.
For additional commentary regarding the Appalachian basis, please check out our piece, “Appalachia Basis in 2021 Is Losing When Henry Hub Rises“, published on June 12.
Mountain Valley Pipeline
- EQM’s Mountain Valley Pipeline (MVP) prepares for construction completion, but it has a full in-service target of early 2021, according to an update provided by the company on June 11, 2020.
- Mountain Valley Pipeline, LLC announced total project work is approximately 92% complete. Forward construction is anticipated to resume when MVP receives its Biological Opinion allowing FERC to lift the projects’ stop-work order.
- On May 14, 2020, the company said the project would be completed in 2020 but this timeline has since been altered due to additional legal and regulatory reviews.
Atlantic Coast Pipeline
- On the Duke Energy earnings call for 1Q2020, CEO Lynn Good commented on the Atlantic Coast Pipeline projects progress, forecasting an in-service date of mid-2022.
- On June 15, 2020, the U.S. Supreme Court ruled that a lower court overstepped when it canceled a critical permit allowing the pipeline project to cross the iconic Appalachian Trail. Construction on the ACP pipeline will proceed once the required permits have been granted,
- The 1.5 Bcf/d project runs 594 miles from Harrison County, West Virginia to Robeson County, North Carolina.
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