U.S. energy company EQT Corp.’s discussions with LNG companies are continuing, the CEO of the biggest natural gas producer in the United States told analysts on an earnings call on July 28.
EQT has long advocated that the U.S. export more LNG to the world to help other countries meet their growing energy needs and reduce emissions by shutting coal-fired power plants.
“We continue to have discussions with LNG end users across various geographies,” EQT CEO Toby Rice said.
The company was especially interested in LNG opportunities along the East Coast, Rice said.
“Right now, we probably have an opportunity to lock in contracts ... with probably about three or four different facilities,” EQT CFO David Khani said on the call. “These facilities need gas supply.” He did not name them.
Rice said EQT already transports about 1 Bcf/d of gas to the Gulf Coast, where most existing U.S. LNG export plants are located.
Finding East Coast LNG opportunities is especially important for a producer like EQT because pipeline capacity in Appalachia, where EQT produces gas, was already near capacity and not expected to grow much in coming years.
“We’ve finally reached the limit of the midstream takeaway capacity in Appalachia,” Rice said.
“We’ve got the biggest natural gas field in the world, and we cannot use that to help lower energy prices for Americans ... because we don’t have pipelines,” Rice said. “They’ve been blocked, canceled and opposed over the last 10 years.”
EQT said it expects the long-delayed Mountain Valley pipeline from West Virginia to Virginia, the last big gas pipe under construction from Appalachia, to enter service in the fourth quarter of 2023.
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