LNG

EQT Corp., the largest shale-gas operator in the US Appalachian Basin and a future LNG market stakeholder, has completed the acquisition of Equitrans Midstream earlier than expected after the Equitrans-operated Mountain Valley Pipeline came online in June 2024.

Mountain Valley Pipeline spanning the states of Virginia and West Virginia and whose operator is Equitrans Midstream, a company currently the subject of a merger deal with LNG player EQT Corp., has formally started up to meet soaring demand and as the most politicised and delayed pipeline in North America.

EQT Corp., the leading US natural gas producer in the Appalachian shale basins and an emerging LNG player, reported a dropped in net income in the first quarter of 2024 as prices were lower, sales increased and a merger was agreed with Equitrans Midstream Corp.

Equinor, the Norwegian supplier of pipeline natural gas to Europe and LNG cargoes, has agreed a US deal with shale-gas giant EQT Corp. to swap Equinor’s operated position in the Marcellus and Utica shale formations in Ohio for a stake in EQT’s non-operated interest in the Northern Marcellus shale formation.

Under the transaction, Equinor will sell 100 percent interest in and operatorship of its onshore asset in the Appalachian Basin, located in southeast Ohio, in exchange for 40 percent of EQT’s non-operated working interest in the North Marcellus shale in Pennsylvania.

Equinor said it would pay a cash consideration of $500 million to EQT to balance the overall transaction, swapping for resources that contribute to growing cashflows and further reducing carbon-dioxide emissions intensity in the international portfolio.

Shale Gas No. 1

EQT is the largest producer of natural gas in the US with operations in Pennsylvania, West Virginia and Ohio.

Equinor is also the owner of the Hammerfest LNG export plant in northern Norway that came on stream in 2007 and it was initially developed to export LNG to the US before the extent of America’s shale-gas resources became clear and the US later became the world’s No. 1 LNG exporter.

Following the shale swap transaction, Equinor said it would increase its average working interest from 15.7 percent to 25.7 percent in certain Chesapeake Energy-operated Northern Marcellus gas units.

However, the strategy of the Norwegian company also involves moving out of all operated shale-gas interests in the main US basins.

“To cover pre-existing gas sales commitments, Equinor will enter a gas buy-back agreement with EQT,” the Norwegian company explained.

Philippe Mathieu, executive vice president for Exploration and Production International at Equinor, said this transaction means the company will continue to “high-grade the US portfolio and improve profitability by strengthening our gas position” in the most robust part of the Appalachian Basin.

“These assets are well positioned to leverage anticipated positive developments in the US gas market,” stated Mathieu.

“The proposed swap improves portfolio robustness with an expected reduction in well break-evens and upstream carbon intensity. This also means that we have now fully exited all operated positions onshore US,” he explained.

Equinor US strategy

“The US is a core area for Equinor where we’re building a broad energy business within offshore and onshore oil and gas, offshore wind, and new low-carbon value chains,” Mathieu added.

EQT President and Chief Executive Toby Z. Rice stated said he was very pleased with the Equinor swap deal.

“This transaction marks an extremely positive start to our divestiture program, bringing in over $1.1 billion of value, including synergies and development plan optimization, for 40 percent of our non-operated assets, while retaining gas price upside,” stated Rice.

“We plan to opportunistically divest the remaining portion of our non-operated assets in Northeast Pennsylvania and have tremendous confidence in being able to achieve our de-leveraging goals,” he added.

Equinor said its US business had recorded $11 billion in earnings since 2020.

“Prior to this transaction, the Appalachian Basin operated position was the last remaining operatorship held by Equinor in the US onshore,” the company added.

Equinor noted that final completion will, among other things, be dependent on approval by relevant authorities. 

EQT Corp., the leading US natural gas producer in the Appalachian shale basins, is merging in a combination worth over $23 billion with Equitrans Midstream, the operator of natural gas gathering systems and the owner of the key Mountain Valley Pipeline.

EQT Corp., the leading US natural gas producer in the Appalachian shale basins and an emerging LNG player, has made a “strategic decision” to curtail approximately 1 billion cubic feet per day of gross production beginning immediately.

EQT Corp., the leading US natural gas producer in the Appalachian shale basins, reported solid annual net income even as earnings dropped for the fourth quarter and has now signed three LNG tolling agreements on the Gulf Coast and was pursuing sales contracts.

EQT Corp., the leading US natural gas producer in the Appalachia Shale basins, reported lower third-quarter profits and cash flow as prices dropped and other expenses increased, including from integrating acquisitions, as it also continued to prepare for a renewed US LNG production surge.

EQT Corp., the leading US natural gas producer in the Appalachia Shale Basin, reported second-quarter losses due to falls in output and prices, though advanced its direct liquefied natural gas prospects by signing a heads of agreement for tolling at the Lake Charles LNG export project in Louisiana for 1 million tonnes per annum.

EQT Corp., one of the leading US natural gas producers and leader of the “Unleash US LNG” advocacy campaign, has formed a strategic alliance with Context Labs to advance the commercialization of verified low-carbon intensity natural gas products and carbon credits.