EQT Corp. (NYSE: EQT) and a NextEra Energy Inc. (NYSE: NEE), of Juno Beach, Fla., announced Sept. 2 the formation of a joint venture (JV) to construct and own the Mountain Valley Pipeline LLC in the Marcellus and Utica shales. The details of the transaction were not disclosed.
Pittsburgh's EQT will operate the pipeline through its affiliates, including EQT Midstream Partners LP (NYSE: EQM), and will own a majority interest in the JV.
With a vast supply of natural gas from Marcellus and Utica shale production, the Mountain Valley Pipeline is expected to provide at least 2 billion cubic feet per day (Bcf/d) of firm transmission capacity to demand markets in the Mid- and South Atlantic regions of the U.S.
The estimated 330-mile Mountain Valley Pipeline will connect the existing Equitrans transmission system in West Virginia, to Transcontinental Gas Pipeline Co.’s Zone 5 compressor station 165 in Virginia–a highly marketable trading area for the southeast region. To date, the JV has received firm capacity commitments that total 1.5 Bcf/d.
The pipeline is expected to be in-service during the fourth quarter 2018.
The JV also announced the launch of a binding open season for the Mountain Valley Pipeline. The binding open season is scheduled to end on Sept. 29.
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