Equitrans Midstream has reached a consent agreement with the US pipeline regulator, the Pipeline and Hazardous Materials Safety Administration (PHMSA), for the Mountain Valley Pipeline (MVP) project. The agreement allows for previously planned inspections to verify the pipeline's integrity and includes other measures. The $6.6 billion gas pipeline project has faced legal challenges since its construction began in 2018. Environmentalists have raised concerns about its impact on soil and water quality. Equitrans Midstream believes that transparently outlining the steps being taken to responsibly complete construction will enhance public confidence in the pipeline's safe operation. The consent agreement is not expected to significantly affect the project's cost or schedule.
Equitrans Midstream is considering all legal options, including a potential appeal to the U.S. Supreme Court, after an appellate court ordered a construction halt on the Mountain Valley natural gas pipeline. The court's decision, which is being reviewed due to challenges from environmental groups, has caused Equitrans shares to drop and could potentially delay the project's completion until 2023. The pipeline, crucial for accessing gas supplies from Appalachia, is owned by Equitrans, NextEra Energy, Consolidated Edison, AltaGas, and RGC Resources. The Biden administration has expressed support for dismissing the appeals, and analysts believe the cases may ultimately be dismissed by the Supreme Court.
A mystery trader made a $7.5 million profit on Equitrans Midstream call options just days before the announcement of the inclusion of the Mountain Valley Pipeline in the debt ceiling deal. The timing of the trade has raised suspicions of insider trading, as the pipeline's inclusion was kept secret until the deal was announced. Congress members are prohibited from trading on confidential information, but a 2021 investigation found repeated violations of the STOCK Act. Ethics watchdogs are calling for an investigation into the matter.
The debt ceiling deal in Washington has caused some companies to emerge as winners. Pipeline company Equitrans Midstream spiked around 40% due to the agreement containing a call to speed up the creation of a stalled natural gas pipeline called the Mountain Valley Pipeline. Lending company SoFi is also expected to benefit as the deal calls for borrowers to start paying back federal student loans at the end of the summer. H&R Block and TurboTax owner Intuit are expected to benefit from the loss of funding to the IRS, which lowers the odds the IRS will build an expansive electronic tax filing system. The defense industry is also emerging largely unscathed from the debt ceiling battle.
Oil prices are set for their first weekly gain in a month due to optimism surrounding US debt ceiling talks and gasoline demand. Western countries have called for increased surveillance over ship-to-ship crude transfers, Alberta wildfires are threatening oil sands production hubs, and Equitrans Midstream's Mountain Valley pipeline has been approved by the Biden Administration. Russia claims to have fulfilled its pledge to cut crude production, Saudi Aramco has halted its Safaniyah oil field expansion, and Chinese firms are eyeing investment in Woodside Energy's Scarborough LNG project.
