Red Rover, Red Rover, send Rover Right Over.
On Feb. 2, 2017, FERC finally granted the long-awaited certificates to begin construction on Rover Pipeline and related expansions of Panhandle and Trunkline. The issuance is a huge sigh of relief for ETP and others given Feb. 3 is Commissioner Norman Bay’s last day and represents the last day the FERC would have a quorum to grant such an issuance until a new commissioner is appointed. Now that hurdle is passed, ETP can begin construction of the pipeline in advance of the anticipated start date later this year. According to a Dec. 16 filing by ETP, the company needed FERC to issue the certificate by the end of December so that Rover could begin construction by mid-January and start flowing up to 1.55 Bcf/d in July and 3.15 Bcf/d in November 2017. Based on this timeline and today’s issuance, EDC currently anticipates a start date closer to August with full service by December but it will certainly be a topic of discussion on the 4Q16 earnings call. Rover and related projects on Panhandle and Trunkline are anticipated to cost over $4 billion and will increase EBITDA for ETP by around $520 million. Rover is 65% owned by ETP and 35% by Traverse Midstream. (Ticker: ETP)