Gas company subsidiary to buy stake in pipeline owner
- October 1, 2015
A subsidiary of Roanoke-based RGC Resources Inc. has agreed to buy a 1 percent interest in the company planning to build the Mountain Valley Pipeline.
The deal between Mountain Valley Pipeline LLC and RGC Midstream LLC would result in natural gas being delivered to several Virginia communities along the proposed pipeline route, the companies said.
In addition, Roanoke Gas Co. will become a shipper on the pipeline to supply and expand its Southwest Virginia customer base.
The Mountain Valley Pipeline is a proposed 300-mile long, 42-inch diameter pipeline running from northwestern West Virginia to Southern Virginia. It is expected to cost $3 billion to $3.5 billion.
“RGC Midstream’s agreement with Mountain Valley Pipeline addresses the growing demand for natural gas in our region and enhances the reliability of our Roanoke Gas system,” John D’Orazio, president and CEO of RGC Resources, said in a statement. “Strengthening our natural gas supply and bringing access to unserved communities is essential for continued progress in Southwest Virginia. It will increase the opportunity for economic growth in our region through a combination of industrial expansions, job creation, and new investments.”
Mountain Valley Pipeline LLC is a joint venture between EQT Midstream Partners LP, the majority owner and operator of the proposed pipeline; and affiliates of NextEra Energy Inc., WGL Holdings Inc. and Vega Energy Partners, Ltd.
Mountain Valley Pipeline LLC expects to file a certificate application with the Federal Energy Regulatory Commission (FERC) later this month. MVP hopes to be in full service during the fourth quarter of 2018.