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EQT, NextEra Form JV; Talk Mountain Valley Pipeline Project

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   |    Tuesday,September 02,2014

EQT Corporation and NextEra US Gas Assets, LLC, an indirect, wholly owned subsidiary of NextEra Energy, Inc reported the formation of a joint venture, Mountain Valley Pipeline, LLC, that will construct and own the Mountain Valley Pipeline.

Access more information on the Mountain Valley Pipeline project in Shale Experts' Infrastructure Database

The joint venture also announced the launch of a binding open season for the Mountain Valley Pipeline. The companies also announced EQT Corporation, 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.

With a vast supply of natural gas from Marcellus and Utica shale production, the Mountain Valley Pipeline is expected to provide at least two billion cubic feet per day of firm transmission capacity to demand markets in the Mid- and South Atlantic regions of the United States. Subject to FERC approval, the estimated 330-mile Mountain Valley Pipeline will connect the existing Equitrans transmission system in West Virginia, to Transcontinental Gas Pipeline Company’s (Transco) Zone 5 compressor station 165 in Virginia – a highly marketable trading area for the southeast region. To-date, the joint venture has received firm capacity commitments that total 1.5 Bcf per day. The pipeline is expected to be in-service during the fourth quarter 2018.

Randy Crawford, senior vice president, EQT Corporation; and chief operating officer, EQT Midstream Partners, commented: "As we move into a binding open season, securing the 1.5 Bcf per day of firm capacity confirms we have an economically viable project. Marcellus and Utica producers will have cost-effective access to the growing demand for natural gas for use by local distribution companies, manufacturers, and power generation facilities."

TJ Tuscai, president, NextEra US Gas Assets, added: "We are encouraged by the market response to the proposed Mountain Valley Pipeline thus far. We look forward to working with our partner EQT to bring a new reliable supply of natural gas to customers in the southeast United States."