A Look into EQT Midstream Partners’ 2017 Capex Plans


Dec. 4 2020, Updated 10:53 a.m. ET

EQT Midstream’s 2017 capex guidance

In this article, we’ll look at EQT Midstream Partners’ (EQM) capex plans for 2017. The partnership expects to spend between $500 million and $850 million on growth projects in 2017. The midpoint of its 2017 capex guidance is slightly higher than the current forecast for 2016.

EQM’s capital expenditure is expected to be allocated across various gathering and transmission projects.

  • EQM will continue to invest in gathering and compression projects for EQT Corporation (EQT) and third-party producers. EQM expects to spend $200 million–$230 million on gathering-related projects in 2017.
  • The MVP (Mountain Valley Pipeline) project is a joint venture to fulfil the growing natural gas demand in the southeastern United States. EQM expects to spend $200 million–$500 million on MVP in 2017. The final environmental impact study is expected in March 2017. According to a press release on October 27, 2016, “MVP JV has secured a total of 2 Bcf[1. billion cubic feet] per day of firm capacity commitments at 20-year terms and is targeting a late 2018 in-service date.”
  • The first phase of the Header Pipeline project was completed in October 2016. The second phase is expected to come online in 2Q17. EQM expects to spend $40 million on the Header Pipeline in 2017. According to a press release on December 12, 2016, “upon completion, the header pipeline will provide total firm capacity of 600 MMcf[2. million cubic feet] per day.”
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EQT Midstream’s new opportunity

EQM’s sponsor, EQT Corporation, has modified its midstream agreement on 62,500 Marcellus acres it acquired earlier this year. According to the related press release, “Under the new agreement, EQT has committed firm volumes of 50 MMcfe[3. million cubic feet equivalent] per day initially and growing to 200 MMcfe per day by the fourth year. In addition to the existing right to provide wellhead gathering services, EQM can now provide high pressure pipeline services on the volume in excess of the commitment.” This agreement would require $600 million in additional capital spending.


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