Source: The Exponent Telegram
CLARKSBURG — West Virginia oil and gas officials are confident the Senate confirmation of nominees to fill two of four open seats on the Federal Energy Regulatory Commission will be good news for the Mountain Valley and Atlantic Coast Pipeline projects.
The approval of Neil Chatterjee and Robert Powelson restores a quorum for the first time since February on the independent commission that oversees natural gas pipelines, as well as the high-power electric grid and hydroelectric dam licensing.
The Mountain Valley and Atlantic Coast projects both received favorable environmental impact reviews last summer.
“WVONGA is very pleased to hear of the Senate’s confirmation of Chatterjee and Powelson,” said West Virginia Oil and Natural Gas Association Executive Director Anne Blankenship.
“The development of these pipelines is crucial to the continued growth of the oil and gas industry. Most of the pending pipeline projects begin in West Virginia and will take otherwise stranded Marcellus and Utica Shale gas to new emerging markets where it is needed to fuel our economy,” Blankenship said.
“With the restoration of a quorum, these pipeline projects can proceed along their anticipated timeline without further delays caused by the commissioner vacancies, increasing the development of oil and natural gas and, in turn, greatly benefiting our state and local economies,” Blankenship said.
Scott Freshwater, executive director of the Independent Oil and Gas Association of West Virginia, agreed.
“It is our belief that the completion and activation of these major pipelines will alleviate the bottleneck restricting West Virginia gas from reaching markets and therefore should have a positive impact on West Virginia-produced natural gas prices, royalty payments and tax revenues,” Freshwater said.
Antero Resources is a natural gas exploration company with offices in Bridgeport and multiple wells in West Virginia.
“It’s a good thing,” said Al Schopp, chief administrative officer and regional senior vice president for Antero.
“Now some of these projects can move forward. The infrastructure is important to getting the gas out of the (Appalachian) Basin. There is a huge price difference between prices locally in West Virginia and prices not too far away,” Schopp said. “That price disparity is going to continue until the gas can get out of the state. That hurts all producers — the local shallower producers the most, as well as the royalty owners. This is good, across the board, to move these along.”
The $3.5 billion Mountain Valley Pipeline would run about 304 miles from the Equitrans transmission system in Wetzel County to a Transcontinental Gas Pipeline Co. compressor station in Pittsylvania County, Virginia. It would run due south in West Virginia, then turn southeast at or near the Virginia border.
The pipeline would require the construction of new compressor stations in Wetzel, Braxton and Fayette counties. The pipeline would be up to 42 inches in diameter and would require about 50 feet of permanent easement, with 125 feet of temporary easement during construction.
The project is a joint venture of EQT Midstream Partners, NextEra US Gas Assets, Con Edison Gas Midstream, WGL Midstream, Vega Midstream MVP and RGC Midstream. The pipeline would be operated by an affiliate of EQT Corp.
The Atlantic Coast Pipeline is a 600-mile, $5 billion infrastructure project that will allow the transmission of nearly 1.5 billion cubic feet of natural gas per day from the Appalachian Basin to outside markets.
The Energy Equipment and Infrastructure Alliance applauded Thursday’s vote and urged the commission to begin immediate consideration of approvals of the pipeline projects currently under its review, beginning with projects that have already been fully vetted and are awaiting only a commission vote.
“This is a win for workers across the energy supply chain and every American that benefits from access to affordable energy,” Toby Mack, president and CEO of the alliance, said in a press release. “This is a step in the right direction to creating jobs, growing our economy and making America stronger. We’re pleased to have played a leading role to get these important officials confirmed so we can get moving again on job creation and building the modern energy infrastructure our country so desperately needs.”