2023-08-14 16:27:26 ET
Equitrans Midstream ( NYSE: ETRN ) -4.1% in Monday's trading after the U.S. Pipeline and Hazardous Materials Safety Administration ordered the Mountain Valley Pipeline to undertake a series of safety inspections on the project.
Arguing that segments of pipe left exposed or buried underground for years due to project delays could pose a safety risk, the agency said "the commissioning and operation of the MVP pipeline without appropriate inspection and corresponding corrective measures first being undertaken would pose a pipeline integrity risk to public safety, property and the environment."
In its safety order, the PHMSA said segments of the pipe have been buried without certain corrosion protections installed or exposed to the elements and ultraviolet radiation "for long periods of time."
The review could result in expensive fixes for the 300-mile project, which already has been delayed for years by legal challenges from environmental groups.
The order was issued Friday, the same day the 4th U.S. Circuit Court of Appeals rejected a challenge by environmentalists to the project.
The Mountain Valley Pipeline project is led by Equitrans Midstream ( ETRN ), with partners NextEra Energy ( NEE ), Consolidated Edison ( ED ), AltaGas ( OTCPK:ATGFF ) and RGC Resources ( RGCO ).
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U.S. safety agency orders inspections in latest hurdle for Mountain Valley Pipeline