Equitrans sees $1.6bn loss in Q4
US-based Equitrans Midstream reported a Q4 2021 net loss of $1.6bn on February 22, attributing the red ink largely to a $1.9bn impairment on its equity investment in Mountain Valley pipeline related to ongoing legal and regulatory challenges.
“While we are pleased with the strong performance of our base business, we are extremely disappointed in the recent decisions by the Fourth Circuit Court to vacate and remand MVP’s Jefferson National Forest crossing permit and biological opinion,” Equitrans CEO Thomas Karam said. “The biological opinion, in particular, underwent an extensive, year-long analysis of relevant, scientific data and included an unprecedented level of review by federal agencies that far exceeded reviews for comparable infrastructure projects.”
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
The vacated permits related to the Jefferson National Forest portion of Mountain Valley – about 3.5 miles – came in the first of two judicial opinions released in recent weeks which further stalled the project, which is about 94% complete and was to have been placed into service this summer, two years later than scheduled. The second, in early February, vacated a biological opinion from the US Fish and Wildlife Service.
“The court’s decisions, which do not reflect traditional judicial deference, create greater uncertainty in our ability to bring this critical infrastructure project to completion, despite total project work being roughly 94% complete,” Karam said. “We remain committed to completing the project and are actively engaging with federal agencies, legal counsel and our partners to evaluate the best path forward.”
A summer in-service date is no longer being targeted, he said, adding Equitrans will provide a timing update following further discussions with relevant federal agencies and its partners.