WGL Holdings (WGL) Unit Takes 3% Stake in Mountain Valley Pipeline

October 31, 2016 8:34 AM EDT

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WGL Midstream, a subsidiary of WGL Holdings, Inc. (NYSE: WGL), 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.

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