A U.S. federal appeals court has rejected a legal bid to block the Southgate Extension, a proposed 31-mile addition to the Mountain Valley Pipeline (MVP) that would expand the natural gas network from Virginia into North Carolina, according to WV Public Broadcasting.

The D.C. Circuit Court of Appeals issued a ruling June 6 denying a petition brought by environmental and community groups seeking to overturn a three-year extension of the project’s federal authorization. The extension was granted in 2023 by the Federal Energy Regulatory Commission (FERC), allowing the MVP Southgate project to move forward after years of delays.

The court’s decision marks the latest chapter in the long-running saga of the Mountain Valley Pipeline — a 303-mile natural gas line stretching from West Virginia to southern Virginia. Although the mainline was completed last year after years of regulatory and legal hurdles, the Southgate segment remains under development and is projected to cost up to $500 million. That’s in addition to the $10 billion already spent on the original project.

EQT Corporation, the largest natural gas producer in the Appalachian region, acquired MVP in 2023. EQT CEO Toby Rice has since indicated that more infrastructure will be needed to support rising regional energy demand driven by data center growth and electricity needs.

Environmental groups have long opposed the Southgate expansion. Peter Anderson, director of state energy policy at Appalachian Voices — one of the organizations behind the court challenge — criticized the ruling, citing continued concerns over potential harm to land, waterways, and communities along the pipeline route, WV Public Broadcasting reported.