According to an economic benefit report released today, the development of the proposed Mountain Valley Pipeline (MVP) project could result in more than $500 million in construction spending, 4,000 direct and indirect jobs, and more than $40 million in tax revenues for the state of West Virginia.
The study, conducted by FTI Consulting, examined the potential economic benefits of the MVP to the state of West Virginia and ten of the eleven counties through which the project is proposed.
“In addition to the job creation and economic investment created by the construction of the project, MVP could provide more than $14 million annually in property taxes to the local county governments where the pipeline is located,” said Blue Jenkins, Executive Vice President, Commercial, EQT Corporation. “As examples, the study found that Monroe County could receive up to $1.7 million annually for the life of the project, which could be more than 50 years; Harrison County could receive up to $1.9 million annually; Webster County up to $1.4 million annually; and Nicholas County up to $2.1 million annually.”
“These are funds that local governments could use for vital public services, including infrastructure needs, roads, emergency services, and perhaps most importantly investments in the education system,” Jenkins said.
The MVP, as proposed, is an underground natural gas pipeline that will traverse approximately 300 miles of West Virginia and Virginia, including the West Virginia counties of Wetzel, Harrison, Doddridge, Lewis, Braxton, Webster, Nicholas, Fayette, Greenbrier, Summers and Monroe. The study found that three types of economic benefits could occur from the construction and operation of the MVP project. These benefits include construction spending benefits, operational benefits and direct-use benefits.
Construction Spending Benefits
- From 2015 to 2018, the MVP project plans include spending approximately $712 million directly on resources (equipment, materials, labor, and services) in West Virginia.
- The MVP would create almost 4,000 jobs at the peak of construction in 2017. Approximately 2,500 of these jobs would be directly associated with the project; 560 jobs would be created along the supply-chain (indirect); and 930 jobs would be created in the general economy (indirect).
- Another benefit of the MVP is the increased state and local tax revenues that result from the economic ripple effect of construction expenditures. The project would generate an estimated $40 million in aggregate tax revenues from 2015 to 2018.
Operational Benefits
Once in service, the MVP would continue to infuse West Virginia’s economy in two main areas:
- The first is in operational employment and spending. Ongoing operation and maintenance of the pipeline would support a total of approximately 54 jobs across the state with average annual wages and benefits of close to $65,000.
- The second is in annual tax revenues through ad valorem taxes (property taxes). Based on the estimated pipeline investments and county property tax rates, the MVP would pay approximately $14.6 million in taxes annually. This amounts to 16 percent of the total 2013 combined budgets for the ten counties covered under this study. (Due to the minimal length of the project in Fayette County, it was not included in this study).
The project is being developed by Mountain Valley Pipeline, LLC – a joint venture between affiliates of EQT Corporation and NextEra Energy, Inc. An in-service date is targeted for the fourth quarter of 2018, at which time the MVP will be operated by EQT Midstream Partners, LP, an EQT affiliate.
To view a full copy of the study, visit www.mountainvalleypipeline.info.
Mountain Valley Pipeline, LLC Cautionary Statements
Disclosures in this news release contain certain forward-looking statements that do not relate strictly to historical or current facts and are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this news release specifically include the expectations of plans, strategies, objectives and growth, and anticipated financial and operational performance of Mountain Valley Pipeline, LLC, including guidance regarding the proposed Mountain Valley Pipeline (MVP) and joint venture, such as the projected length of the MVP; the expected in-service date for the MVP; and the expected economic benefits associated with the MVP, including, but not limited to, expected construction spending, direct and indirect job creation, tax revenues, and job opportunities for fuel switching. The forward-looking statements included in this news release are subject to risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. Mountain Valley Pipeline, LLC has based these forward-looking statements on current expectations and assumptions about future events. While Mountain Valley Pipeline, LLC considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory, and other risks and uncertainties, most of which are difficult to predict and are beyond its control. The risks and uncertainties that may affect the operations, performance, and results of MVP and forward-looking statements include, but are not limited to:
The business, financial condition, results of operations and prospects could suffer if Mountain Valley Pipeline, LLC does not proceed with projects under development or is unable to complete the construction of, or capital improvements to its facilities on schedule or within budget.
The ability to complete construction of, and capital improvement projects and other facilities on schedule and within budget may be adversely affected by escalating costs for materials and labor and regulatory compliance, inability to obtain or renew necessary licenses, rights-of-way, permits or other approvals on acceptable terms or on schedule, disputes involving contractors, labor organizations, land owners, governmental entities, environmental groups, Native American and aboriginal groups, and other third parties, negative publicity, transmission interconnection issues, and other factors. If any development project or construction or capital improvement project is not completed, is delayed or is subject to cost overruns, certain associated costs may not be approved for recovery or recoverable through regulatory mechanisms that may otherwise be available, and Mountain Valley Pipeline, LLC could become obligated to make delay or termination payments or become obligated for other damages under contracts, could experience the loss of tax credits or tax incentives, or delayed or diminished returns, and could be required to write-off all or a portion of its investment in the project. Any of these events could have a material adverse effect on Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects.
Mountain Valley Pipeline, LLC may face risks related to project siting, financing, construction, permitting, governmental approvals and the negotiation of project development agreements that may impede its development and operating activities.
Mountain Valley Pipeline, LLC must periodically apply for licenses and permits from various local, state, federal and other regulatory authorities and abide by their respective conditions. Should Mountain Valley Pipeline, LLC be unsuccessful in obtaining necessary licenses or permits on acceptable terms, should there be a delay in obtaining or renewing necessary licenses or permits or should regulatory authorities initiate any associated investigations or enforcement actions or impose related penalties or disallowances on Mountain Valley Pipeline, LLC, Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects could be materially adversely affected. Any failure to negotiate successful project development agreements for new facilities with third parties could have similar results.
Mountain Valley Pipeline, LLC’s gas infrastructure facilities and other facilities are subject to many operational risks. Operational risks could result in, among other things, lost revenues due to prolonged outages, increased expenses due to monetary penalties or fines for compliance failures, liability to third parties for property and personal injury damage, a failure to perform under applicable sales agreements and associated loss of revenues from terminated agreements or liability for liquidated damages under continuing agreements. The consequences of these risks which could have a material adverse effect on Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects.
Uncertainties and risks inherent in operating and maintaining Mountain Valley Pipeline, LLC's facilities include, but are not limited to risks associated with facility start-up operations, such as whether the facility will achieve projected operating performance on schedule and otherwise as planned:
Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects can be materially adversely affected by weather conditions, including, but not limited to, the impact of severe weather.
Threats of terrorism and catastrophic events that could result from terrorism, cyber-attacks, or individuals and/or groups attempting to disrupt Mountain Valley Pipeline, LLC’s business, or the businesses of third parties, may materially adversely affect Mountain Valley Pipeline, LLC’s business, financial condition, results of operations and prospects.
Any forward-looking statement speaks only as of the date on which such statement is made and Mountain Valley Pipeline, LLC does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, and transmission. EQT is the general partner and significant equity owner of EQT Midstream Partners, LP. With more than 125 years of experience, EQT continues to be a leader in the use of advanced horizontal drilling technology – designed to minimize the potential impact of drilling-related activities and reduce the overall environmental footprint. Through safe and responsible operations, the Company is committed to meeting the country’s growing demand for clean-burning energy, while continuing to provide a rewarding workplace and enrich the communities where its employees live and work. Company shares are traded on the New York Stock Exchange as EQT.
Visit EQT Corporation at www.EQT.com.
About EQT Midstream Partners:
EQT Midstream Partners, LP is a growth-oriented limited partnership formed by EQT Corporation to own, operate, acquire, and develop midstream assets in the Appalachian Basin. The Partnership provides midstream services to EQT Corporation and third-party companies through its strategically located transmission, storage, and gathering systems that service the Marcellus and Utica regions. The Partnership owns 700 miles and operates an additional 200 miles of FERC-regulated interstate pipelines; and also owns more than 1,600 miles of high- and low-pressure gathering lines.
Visit EQT Midstream Partners, LP at www.eqtmidstreampartners.com.
About NextEra Energy, Inc.
NextEra Energy, Inc. (NYSE: NEE) is a leading clean energy company with consolidated revenues of approximately $15.1 billion, approximately 42,500 megawatts of generating capacity, and approximately 13,900 employees in 26 states and Canada as of year-end 2013. Headquartered in Juno Beach, Fla., NextEra Energy’s principal subsidiaries are Florida Power & Light Company, which serves approximately 4.7 million customer accounts in Florida and is one of the largest rate-regulated electric utilities in the United States, and NextEra Energy Resources, LLC, which together with its affiliated entities is the largest generator in North America of renewable energy from the wind and sun. Through its subsidiaries, NextEra Energy generates clean, emissions-free electricity from eight commercial nuclear power units in Florida, New Hampshire, Iowa and Wisconsin. NextEra Energy has been recognized often by third parties for its efforts in sustainability, corporate responsibility, ethics and compliance, and diversity, and has been named No. 1 overall among electric and gas utilities on Fortune’s list of “World’s Most Admired Companies” for eight consecutive years, which is an unprecedented achievement in its industry.
Visit NextEra Energy, Inc. at www.nexteraenergy.com.
About FTI Consulting, Inc.:
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations protect and enhance enterprise value in an increasingly complex legal, regulatory and economic environment. FTI Consulting professionals, who are located in all major business centers throughout the world, work closely with clients to anticipate, illuminate and overcome complex business challenges in areas such as investigations, litigation, mergers and acquisitions, regulatory issues, reputation management and restructuring.
Visit FTI Consulting, Inc. at www.fticonsulting.com.
Contacts:
Natalie Cox –
Corporate Director, Communications, 412-395-3941
ncox@eqt.com
