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Mountain Valley Pipeline Secures New Shipper Commitment

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   |    Tuesday,January 26,2016

Mountain Valley Pipeline, LLC and Consolidated Edison, Inc. announced their intent to deliver natural gas to industrial and consumer end-use markets located in the growing demand areas of the northeast United States through a 20-year transportation agreement with Consolidated Edison Company of New York, Inc. (Con Edison) for 250,000 dekatherms per day of firm capacity on Mountain Valley Pipeline (MVP). Con Edison also agreed to a 20-year firm transportation agreement for 250,000 dekatherms per day on the Equitrans system, located in northern West Virginia and southwestern Pennsylvania, providing more direct access to supply resources upstream of MVP. Equitrans is owned and operated by EQT Midstream Partners, LP.

Ivan Kimball, Vice President of Energy Management, Con Edison, said: "Con Edison is responsible for obtaining low-cost, reliable supply to meet its gas customers’ needs. The MVP and Equitrans capacity agreements allow customers to achieve significant savings."

With the rapid development and vast supply of natural gas in the Appalachian region, the strategic design of the MVP will extend from the Equitrans transmission system in Wetzel County, West Virginia, to Transcontinental Gas Pipeline Company’s (Transco) Zone 5 compressor station 165 in Pittsylvania County, Virginia. The MVP is expected to provide at least two million dekatherms per day of firm transmission capacity and has secured commitments at 20-year terms for this amount, which will support communities along the route, as well as the growing demand markets of the Mid-Atlantic and Southeast regions of the United States.

Randy Crawford, chief operating officer, EQT Midstream Partners, said: "Con Edison is a well-respected utility company that has been serving its northeast customers for more than 190 years and we are thrilled to have them as a partner with Mountain Valley Pipeline. Their participation further validates the need for supply diversification, which is offered through MVP’s access to one of our Country’s largest and lowest-cost energy resources. The MVP project addresses Appalachian infrastructure limitations and, more importantly, offers supply diversity to meet the increasing demand for safe, reliable natural gas by both consumer and industrial markets."

In another agreement, Con Edison Gas Midstream, LLC, a subsidiary of Consolidated Edison, Inc., will acquire a 12.5% ownership interest in Mountain Valley Pipeline, LLC, which is a joint venture between EQT Midstream Partners, LP, operator of the proposed pipeline with a 45.5% ownership interest; and affiliates of NextEra Energy, Inc. at 31% ownership; WGL Holdings, Inc. at 7% ownership; Vega Energy Partners, Ltd at 3% ownership; and RGC Resources, Inc. at 1% ownership.

The MVP is an approximately 300-mile long, 42-inch diameter pipeline, with an estimated total project cost of $3-$3.5 billion. Mountain Valley Pipeline, LLC filed a certificate application with the Federal Energy Regulatory Commission (FERC) in October 2015, and subject to approval by the FERC, the MVP is targeting a full in-service during the fourth quarter of 2018.

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