Equitrans Considers Options Against EQT Corp in Pipeline Dispute
(Reuters) — Pipeline operator Equitrans Midstream said on Monday it will consider all remedies against its former parent company EQT Corp over an ownership dispute for the Hammerhead Pipeline that runs from Pennsylvania to West Virginia.
Equitrans said it was recently made aware that EQT believed the pipeline was not in service, and that gave the producer the right to terminate gathering agreements with Equitrans and take ownership of the line in exchange for reimbursement.
EQT, the largest U.S. natural gas producer, was even marketing the pipeline for a sale with its financial advisors under that belief, an action Equitrans said it believes "constitutes unlawful conduct".
Equitrans said that the 1.6 Bcf/day Hammerhead pipeline was, however, placed in-service on Aug. 1, after being completed and injected with initial line-pack - gas stored in a pipeline - provided by EQT in July 2020.
"We firmly believe, and have communicated to EQT, that EQT lacks any valid basis for its actions and that any attempt by EQT to terminate the Hammerhead gathering agreement and to acquire (or potentially sell) the Hammerhead pipeline is contrary to law," Equitrans said in a statement.
EQT in 2018 split into two, separating its midstream operations from the gas production business. It did not immediately respond to a request for comment.
EQT is still the biggest shareholder of Equitrans, holding around 11.7% of the midstream operator, according to the most recently available data from Refinitiv in March.
Equitrans said it remains committed to a resolution, adding that the two companies have usually resolved disputes amicably in the past.
Related News
Related News
- Kinder Morgan Proposes 290-Mile Gas Pipeline Expansion Spanning Three States
- Enbridge Plans 86-Mile Pipeline Expansion, Bringing 850 Workers to Northern B.C.
- Intensity, Rainbow Energy to Build 344-Mile Gas Pipeline Across North Dakota
- Tallgrass to Build New Permian-to-Rockies Pipeline, Targets 2028 Startup with 2.4 Bcf Capacity
- U.S. Moves to Block Enterprise Products’ Exports to China Over Security Risk
- U.S. Pipeline Expansion to Add 99 Bcf/d, Mostly for LNG Export, Report Finds
- A Systematic Approach To Ensuring Pipeline Integrity
- 275-Mile Texas-to-Oklahoma Gas Pipeline Enters Open Season
- US Poised to Become Net Exporter of Crude Oil in 2023
- EIG’s MidOcean Energy Acquires 20% Stake in Peru LNG, Including 254-Mile Pipeline
Comments