EQT Corp. and NextEra US Gas Assets LLC, an indirect, wholly owned subsidiary of NextEra Energy Inc., have commenced with a nonbinding open season for the 2 bcfd Mountain Valley pipeline project expected to connect Marcellus and Utica natural gas supply to the US Southeast.
The companies also have signed a letter of intent to form a joint venture expected to construct and own the pipeline. Through one or more of its affiliates, including EQT Midstream Partners LP, EQT would operate the pipeline and own a majority interest in the JV.
The 330-mile project will extend the Equitrans transmission system from Wetzel County, W.Va., and travel south to its expected primary delivery point, Transcontinental Gas Pipeline Co.’s (Transco) Zone 5 compressor station 165 in Pittsylvania County, Va.
Along with the primary delivery point, the Mountain Valley 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, EQT said.
Including EQT, the open season has commitments from two foundation shippers that together have agreed to 1 bcfd of firm transmission capacity through 20-year contracts on the line. Delivery to Transco CS 165 is expected enter service by fourth-quarter 2018.
The open season was filed by Equitrans LP, a subsidiary of EQT Midstream Partners. However, the company said the ultimate EQT affiliate to own and operate the pipeline will be determined at a future date. EQT is the general partner of and also owns 32% limited partner interest in EQT Midstream Partners.