EQT Corp. and NextEra US Gas Assets, held a non-binding open season for the Mountain Valley Pipeline project which would connect Marcellus and Utica natural gas supply to markets in the Southeast. The companies signed a letter of intent to form a joint venture to construct and own the Mountain Valley Pipeline.
Under the letter of intent, EQT is expected to, through one or more of its affiliates, including EQT Midstream Partners, LP, operate the pipeline and own a majority interest in the joint venture. The 330-mile will extend the Equitrans transmission system from Wetzel County, WV and travel south to its expected primary delivery point, Transcontinental Gas Pipeline Company’s Zone 5 compressor station 165 in Pittsylvania County, VA.
In addition to the primary delivery point, the pipeline has numerous potential interconnects with pipelines and processing facilities and shippers will have the option to request a project extension to delivery points further south into North Carolina. The Mountain Valley Pipeline is expected to initially provide at least 2 Bcf/d of firm transmission capacity.
Including EQT, the open season has commitments from two foundation shippers that, combined, have agreed to 1Bcf/d of firm transmission capacity through 20-year contracts on the Mountain Valley Pipeline. Delivery to Transco station 165 is expected to be in service by late 2018.