Published by Oil Change International.
A new report by Oil Change International on the Mountain Valley Pipeline (MVP) reveals that banks have continued pouring money into the project over recent years, despite numerous warnings that the project has been financially unsustainable and a threat to the climate.
This analysis, an update to our 2017 report, reveals that the estimated cost of the Mountain Valley Pipeline has nearly doubled since 2017, increasing the potential project cost from USD 3.5 billion to between $6.3 and $6.5 billion.
While the project’s original construction end date has shifted from late 2018 to late-2021, additional analysis by the Allegheny-Blue Ridge Alliance reveals that only 51 percent of the pipeline’s sections are fully constructed. With repeated and ongoing construction delays, and the project still lacking some required permits, a late-2021 completion looks highly uncertain.
Nevertheless, major U.S. banks continue to stand behind the project, and have increased funding to EQT Midstream Partners (EQM), the driving force behind the 301-mile, fracked-gas project. Since 2017, banks and their related capital market institutions have increased their finance to EQM from $1.25 billion to $9.5 billion, with eight of the top ten financiers being main-street U.S. banks.