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The U.S. Federal Energy Regulatory Commission (FERC) has approved the start of construction on the North Carolina section of the Mountain Valley Southgate pipeline project. The decision follows a federal appeals court ruling that rejected efforts by environmental groups to halt water quality certifications issued for the project. The proposed 31-mile natural gas pipeline extension will connect Virginia and North Carolina and transport around 0.55 billion cubic feet of gas per day. The project is expected to enter service in 2028 and carries an estimated cost of USD 524 million.
The U.S. Federal Energy Regulatory Commission (FERC) has approved Mountain Valley Pipeline's request to begin construction on the North Carolina portion of its Southgate Amendment Project, marking another step forward for the planned natural gas infrastructure development.
The approval comes after a federal appeals court recently rejected requests from environmental and advocacy groups seeking to block water quality certifications granted by Virginia and North Carolina for the project.
The Southgate project is a proposed 31-mile extension of the existing Mountain Valley Pipeline system, stretching from Virginia into North Carolina. Once operational, the pipeline is expected to transport approximately 0.55 billion cubic feet of natural gas per day.
Construction activity on the project has been progressing in phases. FERC had already authorized construction of the Virginia segment earlier this year, while the latest approval allows work to move ahead in North Carolina as well.
The Southgate expansion builds on the Mountain Valley Pipeline's mainline project, which entered service in 2024 after facing several years of construction delays, regulatory reviews and legal challenges.
According to the U.S. Department of Energy, the Southgate pipeline could become operational in 2028. The project is estimated to cost around USD 524 million.
Mountain Valley Pipeline is owned by subsidiaries of energy companies EQT, NextEra Energy, AltaGas and RGC Resources. EQT serves as the operator of the pipeline and holds a significant ownership stake in the joint venture.
Source Reuters
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