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Mountain Valley Pipeline offers significant economic benefits to West Virginia

Published by , Editor - Hydrocarbon Engineering
World Pipelines,


According to a new economic benefit report, the development of the proposed Mountain Valley Pipeline (MVP) project could result in more than US$500 million in construction spending, 4000 direct and indirect jobs, and more than US$40 million in tax revenues for the state of West Virginia.

The study, conducted by FTI Consulting, examined the potential economic benefits of the MVP to the state of West Virginia and ten of the eleven counties through which the project is proposed.

“In addition to the job creation and economic investment created by the construction of the project, MVP could provide more than US$14 million annually in property taxes to the local county governments where the pipeline is located,” said Blue Jenkins, Executive Vice President, Commercial, EQT Corporation. “As examples, the study found that Monroe County could receive up to US$1.7 million annually for the life of the project, which could be more than 50 years; Harrison County could receive up to US$1.9 million annually; Webster County up to US$1.4 million annually; and Nicholas County up to US$2.1 million annually.”

“These are funds that local governments could use for vital public services, including infrastructure needs, roads, emergency services, and perhaps most importantly investments in the education system,” Jenkins added.

The MVP, as proposed, is an underground natural gas pipeline that will traverse approximately 300 miles of West Virginia and Virginia, including the West Virginia counties of Wetzel, Harrison, Doddridge, Lewis, Braxton, Webster, Nicholas, Fayette, Greenbrier, Summers and Monroe. The study found that three types of economic benefits could occur from the construction and operation of the MVP project. These benefits include construction spending benefits, operational benefits and direct-use benefits.

Construction spending benefits

  • From 2015 to 2018, the MVP project plans include spending approximately US$712 million directly on resources (equipment, materials, labour, and services) in West Virginia.
  • The MVP would create almost 4000 jobs at the peak of construction in 2017. Approximately 2500 of these jobs would be directly associated with the project; 560 jobs would be created along the supply-chain (indirect); and 930 jobs would be created in the general economy (indirect).
  • Another benefit of the MVP is the increased state and local tax revenues that result from the economic ripple effect of construction expenditures. The project would generate an estimated US$40 million in aggregate tax revenues from 2015 to 2018.

Operational benefits

Once in service, the MVP would continue to infuse West Virginia’s economy in two main areas:

  • The first is in operational employment and spending. Ongoing operation and maintenance of the pipeline would support a total of approximately 54 jobs across the state with average annual wages and benefits of close to US$65 000.
  • The second is in annual tax revenues through ad valorem taxes (property taxes). Based on the estimated pipeline investments and county property tax rates, the MVP would pay approximately US$14.6 million in taxes annually. This amounts to 16% of the total 2013 combined budgets for the ten counties covered under this study. (Due to the minimal length of the project in Fayette County, it was not included in this study).

The project is being developed by Mountain Valley Pipeline, LLC – a joint venture between affiliates of EQT Corporation and NextEra Energy, Inc. An in-service date is targeted for 4Q18, at which time the MVP will be operated by EQT Midstream Partners, LP, an EQT affiliate.


Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/project-news/16122014/mountain-valley-pipeline-offers-significant-economic-benefits-to-west-virginia-21/

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