Equitrans Midstream sees net loss in 2022
US midstream infrastructure developer Equitrans Midstream reported a 2022 net loss of $327.9mn, an improvement over the $1.5bn net loss it suffered in 2021.
In both years, net income was substantially impacted by impairments related to its struggles to complete its Mountain Valley Pipeline (MVP) in the Appalachian Basin, which has been beset by numerous regulatory and permitting challenges. In 2022, the impairment amounted to $583mn; in 2021, it was $1.9bn.
“We believe that the agencies are working to issue authorisations over the next several months, which we believe would position us to safely complete construction of MVP in 2023,” Equitrans CEO Thomas Karam said. “However, we must acknowledge that the ultimate hurdle remains legal challenges of the permits before the US Fourth Circuit Court of Appeals. As we’ve said before, we believe that projects, like MVP, that follow every required process and receive every required permit should prevail.”
Assuming current efforts to finalise permitting are successful, Equitrans expects to complete MVP in time to achieve in-service during the second half this year, at a total project cost of some $6.6bn.
MVP is a joint venture operated by Equitrans, with a 48.1% equity interest, alongside partners NextEra Energy, Consolidated Edison, RGC Resources and Canadian midstreamer AltaGas. The 2bn ft3/day pipeline, which extends about 300 miles across Virginia and West Virginia, carried an initial price tag of $3.5bn when original federal authorisations were issued in 2017, at which time completion was expected by the end of 2018.
The pipeline is about 94% complete, with only a small section in the Jefferson National Forest, the focus of the permitting dispute, left to be finished.