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EQT eyes gas line to North Carolina, Virginia

13 Apr 2018, 5.36 pm GMT

EQT eyes gas line to North Carolina, Virginia

Houston, 13 April (Argus) — EQT is considering building a new natural gas pipeline which would extend 70 miles (113km) south from its 1.9 Bcf/d (54mn m³/d) Mountain Valley pipeline in Virginia.

The company's midstream business, EQT Midstream Partners, announced a binding open season this week for the MVP Southgate project. PSNC Energy, a subsidiary of Scana, will be an anchor shipper on the proposed 290mn cf/d line.

Independent producer EQT announced earlier this year it would spin off its midstream business now that it has become the largest natural gas producer in the US. EQT's fourth quarter sales volume topped 3.2 Bcf/d of natural gas equivalent (Bcfe/d). The spin-off is expected to be complete by the end of the third quarter.

The MVP Southgate project would receive gas produced in Appalachia from an interconnect with Mountain Valley pipeline in Pittsylvania county, Virginia, and extend south to new delivery points in Rockingham and Alamance counties in North Carolina in order to serve demand in southern Virginia and central North Carolina. Mountain Valley pipeline is scheduled to come on line in the fourth quarter.

MVP Southgate is still in the early stages of planning and development, an EQT Midstream spokeswoman said. Total capacity for the line will be determined at the end of the open season, which will close on 11 May.

EQT Midstream expects to file an application for the project with the US Federal Energy Regulatory Commission next month and for the project to come on line in the fourth quarter of 2020.

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