EQT Midstream Acquires Transmission, Storage and Gathering Assets
EQT Midstream Partners acquired the Allegheny Valley Connector (AVC) transmission and storage system, along with several Marcellus gathering systems from EQT Corporation for $275 million in cash, effective Oct. 1. The assets include 209 miles of transmission pipeline and 11 Bcf of working gas storage capacity.
The AVC system has 450 MMcf/d transmission capacity and is fully contracted for the winter season by Peoples Natural Gas, one of Pennsylvania’s largest natural gas distribution companies, through a firm reservation commitment that expires in 2034. EQM expects to invest $50 million in AVC related growth projects during the remainder of 2016 and into 2017.
The gathering assets, consisting primarily of the Applegate, McIntosh, and Terra systems in Pennsylvania, along with the Taurus system in West Virginia, include 87 miles of gathering pipeline, an estimated 7,000 hp of compression and provide 370 MMcf/d of gathering capacity. EQT has committed to of 235 MMcf/d of firm capacity under a 10-year contract on the systems.
EQM expects to invest $105 million over the next several years to complete planned expansion projects, including the installation of 20 miles of gathering pipeline and four compressor units with 20,000 hp of compression. Upon completion of the expansion projects, EQT’s total firm capacity will grow to 365 MMcf/ day.
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