AUSTIN, March 12, 2015 – Mountain Valley Pipeline, LLC, a joint venture between affiliates of EQT Corporation (NYSE: EQT) and NextEra Energy, Inc. (NYSE: NEE), announced that a subsidiary of WGL Holdings, Inc. (NYSE: WGL), WGL Midstream, Inc., has acquired a 7% ownership interest in the joint venture, and a subsidiary of Vega Energy Partners, Ltd., Vega Midstream MVP LLC, has acquired a 3% interest. NextEra Energy will hold a 35% interest; and as previously announced, EQT Midstream Partners, LP (NYSE: EQM) is expected to assume EQT’s 55% majority interest in the joint venture and to operate the proposed Mountain Valley Pipeline.
The Mountain Valley Pipeline is expected to provide at least 2.0 Bcf per day of firm transmission capacity and has secured commitments at 20-year terms for this minimum capacity amount. The estimated 300-mile long pipeline is currently targeted at 42" in diameter, with an approximate project cost of $3-$3.5 billion. Subject to approval by the Federal Energy Regulatory Commission (FERC), the pipeline is expected to be in-service during the fourth quarter of 2018.
As part of the agreement, WGL Midstream, Inc. will be a shipper on the proposed Mountain Valley Pipeline (MVP) and has also committed to buying a significant amount of natural gas at Transcontinental Gas Pipeline Company’s (Transco) Zone 5 compressor station 165 in Pittsylvania County, Virginia.
Baker Botts represented EQT Corporation and Mountain Valley Pipeline in the transaction.
Baker Botts Lawyers/Office Involved: Mike Bengtson (Partner, Austin); Jon Nelsen (Partner, Austin); John Kaercher (Associate, Austin); Scott Looper (Associate, Houston); John Craven (Associate; Houston); Leah Davis Patrick (Associate, Houston)
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