$20.83 | -0.21
June 25, 2019 2:30 AM ET

$44.62 | 0.14
June 25, 2019 2:30 AM ET


Transmission

Owned by EQM Midstream Partners, LP (EQM), as of December 31, 2018, the transmission and storage system included an approximately 950-mile FERC-regulated interstate pipeline that connects to seven interstate pipelines and local distribution companies. The transmission and storage system is supported by 18 associated natural gas storage reservoirs with approximately 645 MMcf per day of peak withdrawal capacity, 43 Bcf of working gas capacity, and 41 compressor units, with total throughput capacity of approximately 4.4 Bcf per day and compression of approximately 120,000 horsepower at year-end 2018. Transmission also includes EQM’s investment in the Mountain Valley Pipeline (MVP).

EQM pursues transmission projects aimed at profitably increasing system capacity and invested approximately $111 million on transmission and storage system infrastructure in 2017. Revenues in 2017 increased by approximately $41 million or 12% compared to 2016. The following transmission projects are currently in progress:

Mountain Valley Pipeline

Mountain Valley Pipeline, LLC (MVP Joint Venture) is a joint venture with affiliates of each of NextEra Energy, Inc., Consolidated Edison, Inc., AltaGas Ltd. and RGC Resources, Inc. EQM is the operator of the MVP and owned a 45.5% interest in the MVP Joint Venture as of December 31, 2018. The 42-inch diameter pipeline has a targeted capacity of 2.0 Bcf per day and is estimated to span 300 miles extending from Transmission’s existing transmission and storage system in Wetzel County, West Virginia to Pittsylvania County, Virginia, providing access to growing Southeast demand markets. As currently designed, the MVP is estimated to cost a total of $4.6 billion, excluding AFUDC, with EQM funding approximately $2.2 billion of the project cost.  In 2019, EQM expects to make capital contributions of approximately $0.9 billion to the MVP Joint Venture, depending on the timing of the construction of the MVP and the MVP Southgate projects. The MVP Joint Venture has secured a total of 2.0 Bcf per day of firm capacity commitments at 20-year terms. MVP is expected to be placed in-service during the fourth quarter 2019.

Mvp Southgate

In April 2018, the MVP Joint Venture announced the MVP Southgate project, a proposed 70-mile interstate pipeline that will extend from the MVP at Pittsylvania County, Virginia to new delivery points in Rockingham and Alamance Counties, North Carolina. The MVP Southgate project is backed by a 300 MMcf per day firm capacity commitment from PSNC Energy. As designed, the MVP Southgate project has expansion capabilities that could provide up to 900 MMcf per day of total capacity. The MVP Southgate project is estimated to cost a total of approximately $450 million to $500 million, which is expected to be spent primarily in 2019 and 2020. In 2019, EQM expects to provide capital contributions of approximately $40 million to the MVP Joint Venture for the MVP Southgate project. In the fourth quarter of 2018, EQM assumed a portion of Con Edison’s ownership interest and purchased a portion of PSNC Energy’s ownership interest in the MVP Southgate project. As a result of these transactions, EQM’s ownership interest increased from 32.7% to 47.2%. As of December 31, 2018, EQM was the operator of the MVP Southgate pipeline and owned a 47.2% interest in the MVP Southgate project. The MVP Joint Venture submitted the MVP Southgate certificate application to the FERC in November 2018. Subject to approval by the FERC, the MVP Southgate project has a targeted in-service date of the fourth quarter of 2020.

Transmission Expansion

In 2019, EQM expects to invest approximately $60 million in other transmission expansion projects, primarily attributable to the Equitrans, L.P. Expansion project, which is designed to provide north-to-south capacity on the mainline Equitrans, L.P. system for deliveries to the MVP, and power plant projects. The Equitrans, L.P. Expansion project has a targeted in-service date of the fourth quarter of 2019.