FERC Reviewing $160 Million Ohio Valley Connector Expansion
By Mary Holcomb, Digital Editor
(P&GJ) — The U.S. Federal Energy Regulatory Commission (FERC) has issued a notice that it will conduct an environmental review of Equitrans’ Ohio Valley Connector Expansion (OVCX) project, a regulatory hurdle that if passed will bring the project closer to receiving authorization.
The $160 million pipeline expansion project is expected to add compression along Equitrans pipelines in Pennsylvania, Ohio and West Virginia if approved. This will allow the company to flow an additional 350 MMcf/d of natural gas.
“Equitrans recognizes the importance of fair and respectful treatment of landowners impacted by the projects it constructs and operates, which meet the vital energy needs of its communities and customers and will work to adhere to the Interstate Natural Gas Association of America’s Commitments to Landowners,” the company said in a statement.
The environmental document will be leveraged in FERC’s decision-making process to determine if the project is in the public’s interest.
As part of the National Environmental Policy Act (NEPA) review process, the Commission considers concerns the public may have about the project and the environmental impacts that could result from its action whenever it considers the issuance of a Certificate of Public Convenience and Necessity.
In January 2022, Equitrans submitted its application to the FERC to expand the Ohio Valley Connector (OVC), stating it would help the company meet growing demand in the mid-continent and gulf coast through existing interconnects with long-haul pipelines in Clarington, Ohio.
OVC is currently a 37-mile pipeline with a total capacity of roughly 850 MMcf/d. It is backed by a 20-year transportation service agreement with EQT Energy LLC, an affiliate of EQT Corp., for 650 MMcf/d of firm transmission capacity.
In its application, Equitrans proposed to acquire and operate the existing non-jurisdictional Cygrymus Compressor Station—located in Greene County, Pennsylvania—and install two new turbines.
Additionally, it plans to install one additional compressor unit each at the existing Corona Compressor Station in Wetzel County, West Virginia and at the existing Plasma Compressor Station in Monroe County, Ohio.
Equitrans would also construct approximately 5.5 miles of pipeline and ancillary facilities in different locations related to the compressor stations.
If approved, OVCX will allow the transport of natural gas from Equitrans’ Mainline and Sunrise Transmission Systems and other gathering receipt points to interconnections with interstate pipelines operated by Rockies Express Pipeline and Rover Pipeline LLC.
The targeted in-service for the incremental OVC capacity is the third quarter of 2023. ETRN plans to invest approximately $160 million, including approximately $130 million for new compression.
The FERC regulatory process will be initiated in early 2022 — and pending regulatory approvals — construction of the project is anticipated to begin in March 2023, with completion of all project components expected in June 2024.
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