Equitrans Shares Jump After $6.2 Billion Gas Pipeline Gets Key Approval

(Bloomberg) -- Equitrans Midstream Corp. shares jumped by the most in more than a week after the company secured a key water permit for its Mountain Valley natural gas pipeline.

The approval by Virginia regulators Tuesday brings the project closer to completion after years of legal setbacks and ballooning costs. Though the pipeline is 90% complete, permitting delays have pushed it four years behind schedule and costs have nearly doubled to $6.2 billion from $3.5 billion. 

The permit granted Tuesday by the Virginia State Water Control Board allows the pipeline to cross under dozens of streams in the state, and was a prerequisite to securing final permits from the U.S. Army Corps of Engineers. The project still needs a water permit from the state of West Virginia, as well as approval from the Federal Energy Regulatory Commission to cross about 120 water bodies. 

Shares rose as much as 3% to $9.70 in New York Tuesday.

Once completed, the 303-mile conduit that runs from northwestern West Virginia to southern Virginia will be able to deliver 2 billion cubic feet of natural gas a day to Eastern markets. It’s expected to start service in 2022.

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