EQT Corporation and DCP Midstream Partners LP (DCM) and its sponsor DCP Midstream LLC (together DCP) have announced a letter of intent to create a natural gas processing and related natural gas liquid (NGL) infrastructure project.
The project will serve EQT and third-party producers in the Marcellus and Huron shale areas of the Appalachian Basin, US.
The joint effort reduces the amount of incremental EQT capital required for investments in midstream projects to support DCP’s growing volumes of produced natural gas, the company said.
DCP aims to provide about $200m for its 50% interest in the joint venture.
