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EQT, NextEra Secure 2 Bcf/d in Capacity for Mountain Valley Pipeline

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   |    Wednesday,October 08,2014

Mountain Valley Pipeline, LLC, a joint venture between affiliates of EQT Corporation and NextEra Energy, Inc., announced that through its current open season it has secured 2 Bcf per day of firm capacity commitments at 20-year terms for the Mountain Valley Pipeline project (access more on the project here).

In order to accommodate continued shipper interest, the binding open season was extended until Friday October 10, 2014. EQT, through one or more of its affiliates, including EQT Midstream Partners, LP, will operate the pipeline and own a majority interest in the joint venture.

Virginia Governor Terry McAuliffe stated, "In order to compete globally to attract businesses and create jobs, Virginia must have world-class energy infrastructure that provides abundant access to low-cost energy sources. New natural gas pipelines, like the Mountain Valley Pipeline, will diversify our energy mix, reduce our Commonwealth’s carbon emissions, and help build a new Virginia economy."

During the past few years, the energy industry has been an important economic boost to several states in the Appalachian Basin, including both Virginia and West Virginia, sustaining jobs, bringing in new manufacturing opportunities, and increasing tax revenues.

West Virginia Governor Earl Ray Tomblin said, "West Virginia continues to be one of our nation’s energy leaders, and the Mountain Valley Pipeline will help create new construction jobs for our workforce and identify markets for our state’s abundant supply of natural gas. We appreciate EQT's continued investments in our state and their willingness to work with local economic developers to provide natural gas service in areas that would benefit from both new industry and downstream growth. These investments have the potential to create good-paying jobs and by keeping key byproducts in our state, we have the opportunity to rejuvenate our manufacturing sector and create promising opportunities for future generations."

With its connection to the existing Equitrans system in West Virginia, the Mountain Valley Pipeline (MVP) will deliver natural gas supply from vast resources located in the Marcellus and Utica shale development areas to the Transco Zone 5 compressor station 165 in Virginia. The estimated 300-mile pipeline will address producers’ growing infrastructure constraints, while more importantly offering critical supply diversity to meet the increasing demand for natural gas in the Mid-Atlantic and Southeast markets.

Randy Crawford, senior vice president, EQT Corporation; and chief operating officer, EQT Midstream Partners, commented: "As the demand for energy continues to grow in the southeast region of the U.S., we are proud to partner with NextEra Energy to develop a project that will deliver clean-burning, domestically produced natural gas to various manufacturing and consumer markets. Tapping our vast energy reserves is the first step in our nation’s drive for energy independence."

TJ Tuscai, president, NextEra US Gas Assets said, "We are pleased with the market response to the proposed Mountain Valley Pipeline open season. We look forward to working with the communities along the pipeline route and our partner EQT to bring a new reliable supply of natural gas to customers in the southeast United States."