EQT Midstream Partners, LP (NYSE: EQM), an EQT Corporation company, and its subsidiary Equitrans, LP, today announced the commencement of a non-binding open season to gauge customer interest in securing firm transmission and storage capacity on what will be known as the "Allegheny Valley Connector."
The Allegheny Valley Connector consists of transmission and storage assets that are expected to transfer to EQT Corporation as part of a proposed transaction with Peoples Natural Gas Company LLC (Peoples). This proposed transaction is currently pending regulatory approvals, which are anticipated by year-end 2013. Upon closing of the transaction, the Allegheny Valley Connector is expected to be operated by Equitrans and owned by EQT Corporation, and is not projected to have a positive or negative affect on EQT Midstream Partners' distributable cash flow.
The Allegheny Valley Connector is located in the Marcellus Shale region and its primary function is to store and transport natural gas to numerous Peoples' interconnects, including use by Peoples and other gas suppliers to provide local distribution service to Peoples' customers. Results from the open season will determine any additional capacity and/or specific system modifications that may be required. The final design and scope of such modifications is expected to be at Equitrans' discretion and subject to negotiations with interested shippers.
Parties interested in: a) storage; b) Peoples' interconnects; and/or, c) new downstream interconnects to markets via the Texas Eastern Transmission, LP, and Dominion Transmission, Inc. systems must submit a Service Request Form. The open season request forms, a map of Equitrans' current pipeline assets, and additional information on the Allegheny Valley Connector project are available at www.eqtmidstreampartners.com. Equitrans' open season runs February 27, 2013 through 12:00pm (ET) March 13, 2013.About EQT Midstream Partners: EQT Midstream Partners, LP is a growth-oriented limited partnership formed by EQT Corporation to own, operate, acquire and develop midstream assets in the Appalachian basin. The Partnership provides midstream services to EQT Corporation and third-party companies through two primary assets: the Equitrans Transmission and Storage System and the Equitrans Gathering System. The Partnership has a 700-mile, FERC-regulated, interstate pipeline system and more than 2,000 miles of FERC-regulated, low-pressure gathering lines.