Natural Gas Company EQT said it will sell its Sunrise Pipeline Unit to EQT Midstream Partners LP for $507.5 million in cash, and $32.5 million of common and general partnership units.
EQT Midstream, controlled by EQT Corp, provides transportation and storage services to EQT, as well as to other companies.
Sunrise Pipeline LLC’s assets include a 41.5 mile pipeline between West Virginia and Pennsylvania, a compression station and an interconnect with the Texas Eastern pipeline in Greene County, OH.
As it adds more capacity to the compressor station, EQT Midstream has also signed an agreement with another producer for about a quarter of the capacity on the Sunrise system. That arrangement is scheduled to begin in December 2014 and when it does, EQT Midstream will pay another $110 million to EQT Corp.
Just over a year ago, EQT Corp. spun out EQT Midstream in a $262.5 million initial public offering. The rationale was to get more money for its exploration and production activities by selling off assets
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