EQT Corp. plans to sell its Sunrise Pipeline and associated assets to its affiliate, EQT Midstream Partners LP, for $540 million.
Sunrise is a 41.5 mile interstate gas pipeline that runs from Wetzel County, W.Va., to Greene County, Pa. The system includes gas storage and the Jefferson compressor station in Greene County which is undergoing an expansion that will more than double its capacity.
EQT Midstream leases the pipeline from EQT Corp. and operates it to process gas from EQT's production segment.
As it adds more capacity to the compressor station, EQT Midstream has also signed an agreement with another producer for about a quarter of the capacity on the Sunrise system. That arrangement is scheduled to begin in December 2014 and when it does, EQT Midstream will pay another $110 million to EQT Corp.
Just over a year ago, EQT Corp. spun out EQT Midstream in a $262.5 million initial public offering. The rationale was to get more money for its exploration and production activities by selling off assets.
Anya Litvak: email@example.com or 412-263-1455.