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EQT Midstream Partners, LP (NYSE:EQM) today announced that it has entered into definitive agreements with a subsidiary of Range Resources Corporation to provide gathering, compression, and transmission services in eastern Washington County, Pennsylvania.
In 2014, EQT Midstream Partners (the Partnership) will invest approximately $30 million in gathering infrastructure and $25 million in a transmission expansion project in conjunction with the agreements. The transmission expansion will add approximately 100 BBtu per day of capacity to the Partnership’s transmission system in southwestern Pennsylvania and is expected to be in service by November 1, 2014. The agreements include a fee-based, 10-year minimum volume commitment for gathering and transmission services, and provide Range with the opportunity to expand their capacity to 300 BBtu per day and above. Range has a substantial acreage position in eastern Washington County, Pennsylvania, and the Partnership anticipates many years of development in the area.
Randy Crawford, Chief Operating Officer, stated, “We are pleased to provide gathering, compression, and transmission services to Range Resources, a leading Marcellus producer. Our strong infrastructure footprint in southwestern Pennsylvania is uniquely situated to offer producers the flexibility they require to connect to multiple markets and demand outlets." Crawford continued, "We are poised to benefit from growing demand for pipeline infrastructure throughout the Marcellus region."
The Partnership now forecasts total capital expenditures to be approximately $135 - $140 million in 2014. This includes approximately $105 - $110 million of expansion capital expenditures. The Partnership now expects to increase its transmission capacity by 750 BBtu per day in 2014, which will bring the total transmission capacity to 3.0 TBtu per day.
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 Transmission and Storage System and a Gathering System. The Partnership owns 700 miles, and operates an additional 200 miles, of FERC-regulated interstate pipelines; and owns more than 1,600 miles of FERC-regulated, low-pressure gathering lines.