NextEra supports $800 million for natgas WV-VA Mountain Valley pipe

Lengths of pipe wait to be laid in the ground along the Mountain Valley Pipeline under construction near Elliston, Virginia, U.S. September 29, 2019. Picture taken September 29, 2019. REUTERS/Charles Mostoller

Feb 19 (Reuters) – NextEra Energy Inc said one of its units recorded an $800 million impairment charge in the first quarter as the U.S. renewable energy company reassessed its investment in the long-standing Mountain Valley pipeline. from West Virginia to Virginia.

NextEra said in a U.S. Securities and Exchange Commission filing on Friday that its NextEra Energy Resources unit and other partners in the Mountain Valley joint venture continue to evaluate options and next steps for the project.

Last month, the United States Court of Appeals for the Fourth Circuit invalidated key permits for the project issued by the US Fish and Wildlife Service and the US Forest Service. Read more

The court rulings were the latest setback for the pipeline, which is years behind schedule and billions of dollars over budget.

Several analysts said court rulings would likely delay the start of the project until 2023 or 2024.

Ahead of the latest setbacks, Equitrans Midstream Corp (ETRN.N), the project’s lead partner, said it expected the pipeline to cost around $6.2 billion and enter service in the summer of 2022. .

Equitrans said in January that it was “evaluating next project steps and timing considerations,” noting that the total work on the pipeline was “nearly 94% complete.” Read more

Mountain Valley is one of many U.S. pipeline projects delayed by regulatory and legal battles with environmental and local groups that have run into issues with federal permits issued under President Donald Trump’s administration. Read more

When construction on Mountain Valley began in February 2018, Equitrans estimated the 488 km, 2 billion cubic feet per day (bcfd) project would cost around $3.5 billion and be in service by the end of 2018.

Equitrans owns a 47.8% interest in Mountain Valley and will operate the pipeline.

The Mountain Valley business is owned by units of Equitrans, NextEra, Consolidated Edison Inc (ED.N), AltaGas Ltd (ALA.TO) and RGC Resources Inc (RGCO.O).

Reporting by Scott DiSavino; Editing by Mike Harrison

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