The proposed Mountain Valley Pipeline (MVP) project is a natural gas pipeline system that would span approximately 303 miles from the north of West Virginia to the south of Virginia. In Virginia, it would pass through six southwestern counties – Giles, Craig, Montgomery, Roanoke, Franklin, and Pittsylvania. The following describes the benefits to Virginia and Giles County from construction spending, pipeline operations, ad valorem taxes, and direct supply of natural gas. Full reports and maps can be downloaded below and for more information, please visit our FAQ’s page.
The MVP project developers expected to spend over $400 million on Virginia-based labor, goods, and services from 2015 to 2018 to support the construction of the project. This direct spending would add $369 million in cumulative gross regional product to Virginia during that period and approximately 4,400 jobs in 2018 at the peak of construction. With its large, established manufacturing base, Giles County could contribute labor and other resources to the construction effort.
Pipeline Operation Benefits
Ongoing operation of the pipeline would support a total of 34 jobs across the state with average annual wages and benefits of almost $67,000.
Ad Valorem Tax Benefits
The MVP project is expected to generate $1.7 million in annual county ad valorem taxes (property taxes) once the pipeline is in service.
Residential and Commercial Sectors
The Towns of Pearisburg and Narrows, which represent 27% of the county households and commercial entities, have natural gas access. The remaining 73% of the county, however, use primarily electricity for heating needs. The area east of the New River, particularly the Town of Pembroke, less than two miles from the planned route, is not served by natural gas and could benefit from the MVP project’s proximity.
The manufacturing sector represents the largest opportunity for Giles County to benefit from the MVP project. The sector employs over 1,000 people, accounting for $63 million in annual wages or 36% of the total employment wages in the county. There is estimated to be 8.5 billion cubic feet per year of new natural gas demand potential among manufacturers. Fulfilling this demand would result in 73 new jobs and $4.5 million in additional wages. The Celanese plant exemplifies the benefits of natural gas access. Building a new gas pipeline and replacing its coal boilers with gas boilers to meet EPA regulations has allowed Celanese to continue operating in the county, retaining 600 employees and adding 22 new, permanent jobs.
Fuel switching in municipal and private vehicle fleets presents another possible savings opportunity. There are estimated to be approximately 100 school buses, other school vehicles, solid waste disposal trucks, and county vehicles, which if converted from gasoline and diesel, would yield over $100,000 in annual savings.