WGL Midstream Acquires Additional 3 Percent Interest in Mountain Valley Pipeline
WASHINGTON--(BUSINESS WIRE)--
WGL Midstream, a subsidiary of WGL Holdings, Inc. (NYSE: WGL), today
announced that it has increased its ownership interest in Mountain
Valley Pipeline, LLC ("Mountain Valley"), by acquiring all of Vega
Energy's 3 percent interest in the joint venture. The other members of
Mountain Valley include EQT Midstream Partners, LP (NYSE: EQM), a
significant interest owner and operator of the proposed Mountain Valley
Pipeline, and affiliates of NextEra Energy, Inc. (NYSE: NEE), Con
Edison, Inc. (NYSE: ED), and RGC Resources, Inc. (NASDAQ: RGCO). WGL
Midstream now owns a 10 percent interest in Mountain Valley, and its
estimated aggregate investment is expected to be approximately $326
million.
In October 2015, Mountain Valley filed an application with the Federal
Energy Regulatory Commission (FERC) seeking authorization to build the
Mountain Valley Pipeline ("MVP"), an approximately 300-mile interstate
natural gas transmission pipeline designed to provide timely,
cost-effective access to the growing supply of natural gas for use by
local distribution companies, industrial users, and power generation
facilities in the Mid-Atlantic, Southeast, and Appalachian regions of
the United States. The MVP would transport the abundant supply of
Marcellus and Utica natural gas, commencing in Wetzel County, West
Virginia and traversing south through 11 counties in West Virginia,
southeast through six counties in Virginia, and ending in Pittsylvania
County, Virginia.
"This acquisition represents WGL's continued commitment to drive strong
shareholder value through asset-based investments which provide energy
answers to our customers," said Terry McCallister, Chairman and CEO of
WGL. "Through our expanding portfolio of pipeline interests, our
location at the crossroads of the region's supply and demand, and our
diverse and growing customer base, WGL is well positioned to provide the
energy services that support the growing market for natural gas."
The MVP is expected to provide at least 2 Bcf per day of firm
transmission capacity and has secured 20-year commitments for the full
minimum capacity amount of 2 Bcf per day. Subject to approval by the
FERC, the MVP continues to target an in-service date in late 2018. For
more information, visit www.mountainvalleypipeline.info.
About WGL Midstream
WGL Midstream meets the expanding demand for natural gas through
investment, management, development and optimization of natural gas
storage and transportation projects. WGL Midstream's customers and
counterparties include producers, utilities, LNG exporters, local
distribution companies, power generators, wholesale energy suppliers,
pipelines and storage facilities.
About WGL
WGL (NYSE: WGL), headquartered in Washington, D.C., is a leading source
for clean, efficient and diverse energy solutions. With activities and
assets across the U.S., WGL consists of Washington Gas, WGL Energy, WGL
Midstream and Hampshire Gas. WGL provides natural gas, electricity,
green power and energy services, including generation, storage,
transportation, distribution, supply and efficiency. Our calling as a
company is to make energy surprisingly easy for our employees, our
community and all our customers. Whether you are a homeowner or renter,
small business or multinational corporation, state and local or federal
agency, WGL is here to provide Energy Answers. Ask Us. For more
information, visit us at www.wgl.com.
Forward-Looking Statements
This press release includes forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995 with
respect to WGL's investment in Mountain Valley and the specifications,
strategies, operations and performance of Mountain Valley and the MVP,
such as: the projected length and pipeline diameter of the MVP; the
entities that are expected to own and/or operate the MVP; the MVP's
expected interconnections with facilities and pipelines; existing
customer commitments; the timing of development and construction for the
MVP; the estimated cost of MVP and the estimated investment of WGL in
Mountain Valley; the expected in-service date for the MVP and other
future expectations. Forward-looking statements are typically identified
by words such as, but not limited to, "estimates," "expects,"
"anticipates," "intends," "believes," "plans," "forecasts," and similar
expressions, or future or conditional verbs such as "will," "should,"
"would," and "could." Although we believe such forward-looking
statements are based on reasonable assumptions, we cannot give assurance
that every objective will be achieved. Forward-looking statements speak
only as of today, and we assume no duty to update them. Factors
that could cause actual results to differ materially from those
expressed or implied include, but are not limited to, whether Mountain
Valley proceeds with projects under development and is able to complete
the construction of MVP, and capital improvements to its facilities, on
schedule and within budget; the ability of MVP to recover costs through
regulatory mechanisms; Mountain Valley's ability to obtain governmental
approvals and permits on time and on acceptable terms; risks related to
project siting, financing, construction and the negotiation of project
development agreements; risks inherent in operating and maintaining
Mountain Valley's facilities, including whether the facility will
achieve projected operating performance on schedule and otherwise as
planned; risks associated with weather conditions, including severe
weather; risks relating to terrorism or other catastrophic events; and
the factors discussed under the "Risk Factors" heading in our most
recent annual report on Form 10-K and other documents filed with or
furnished to the Securities and Exchange Commission.
View source version on businesswire.com: http://www.businesswire.com/news/home/20161031005163/en/
WGL Midstream
News Media:
Bernie Tylor, 202-624-6778
or
Financial
Community:
Douglas Bonawitz, 202-624-6129
Source: WGL Midstream
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