Mountain Valley Pipeline moves to advance Southgate project By EPN Staff The Mountain Valley Pipeline LLC joint venture has applied with federal regulators to amend its plans for a natural gas transmission pipeline extension from Virginia to North Carolina and is aiming to start construction next year. The joint venture, led by Pittsburgh-based EQT, completed the 303-mile Mountain Valley Pipeline, stretching from northern West Virginia to southern Virginia, last summer. The MVP Southgate project would receive natural gas from the Mountain Valley Pipeline in Pittsylvania County, Virginia, and deliver it into neighboring Rockingham County, North Carolina. The 31-mile route is a truncated version of the original Southgate project announced in 2018, which was proposed to run 75 miles before it encountered permitting challenges. Why it matters Since entering service in summer 2024, the 303-mile Mountain Valley Pipeline has added critical capacity to the region’s natural gas infrastructure system and demonstrated market demand for new supplies of natural gas. In January, as the Eastern Seaboard was gripped by freezing temperatures, the MVP began operating at full capacity, transporting 2 million dekatherms (2 billion cubic feet) per day of natural gas for home heating and cooking, electricity generation, and industrial and commercial uses. The influx of new natural gas supply also maintained affordability by better containing prices. Developers have described the MVP Southgate as vital to diversifying North Carolina’s natural gas supply and ensuring the state’s energy security. The state has no natural gas production and no natural gas reserves, and it relies almost entirely on the Transco transmission system for its natural gas supply. Bigger picture North Carolina’s electricity generation is largely driven by natural gas; 43 percent of the state’s total generation came from natural gas-fired power plants. As the state moves to retire its existing coal-fired generation, natural gas and nuclear have been viewed as the most likely sources to meet current – and future – demand for reliable and affordable electricity generation. The MVP Southgate’s full capacity of 550,000 dekatherms (550 million cubic feet) of natural gas per day is fully subscribed under contracts with Duke Energy and PSNC, a local gas distribution company serving parts of western and central North Carolina, including the fast-growing Triangle area. The project will involve 30-inch diameter pipe buried underground. About a quarter of North Carolina residents rely on natural gas to heat their homes; these residential customers use about 10% of North Carolina’s natural gas supply. About 64% of the state’s natural gas supply is consumed for electricity generation; 18% goes to industrial and manufacturing uses, while 8% fuels commercial operations. Deeper context The state has built a reputation among the best for business, drawing major new economic development projects and expansions that require access to natural gas. Opponents of the project have argued against its development and rejected the market demand for natural gas. The Virginia and North Carolina chambers of commerce and other business and consumer-oriented organizations support the project. Construction of MVP Southgate is expected to generate nearly 1,000 jobs. The developers are targeting operation to begin in 2028.
