EQT & NextEra Tie the Knot on WV-VA Pipeline Joint Venture

There’s a big difference between nonbinding and binding–as in open seasons. When a pipeline company wants to see if they can get any interest for building a pipeline (which involves millions of dollars of investment, sometimes billions) they start with a “nonbinding” open season. Think of it as an elaborate marketing exercise in lead generation. If the company gets good vibes from the nonbinding open season, they then move to a binding open season. It’s one thing to say “Yeah, we’ll use X capacity on that pipeline if you build it.” It’s a whole other thing to sign on the dotted line, committing to a binding contract for the next 10-20 years. It is a huge financial commitment. EQT and their joint venture partner NextEra Energy announced a new pipeline project in June. The 330-mile Mountain Valley Pipeline project would run from Wetzel County, WV to Pittsylvania County, VA (see EQT Announces New Marcellus/Utica Pipeline to Southeastern US). EQT announced yesterday the previous nonbinding open season changed to binding, an important change…

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