EQT signs 10-year gas deals with Duke, Southern

: Electricity, Natural gas
25/06/11

US natural gas producer EQT has signed 10-year firm supply deals with US utilities Duke Energy and Southern Company for a combined 1.2 Bcf/d of gas beginning in 2027.

EQT previously disclosed it struck deals to sell 800mn cf/d and 400mn cf/d of gas to "investment-grade utilities" in the southeastern US, but it has not disclosed the buyers. Those previously unnamed utilities are North Carolina-based Duke, which has contracted for 800mn cf/d from EQT, and Georgia-based Southern, which has contracted for 400mn cf/d, according to people with knowledge of the matter.

EQT declined to comment for this story. Duke and Southern did not immediately respond to requests for comment.

The deals represent about 20pc of EQT's production and allow EQT to take advantage of contracted capacity it holds on Mountain Valley Pipeline, which ferries gas from West Virginia to Virginia. EQT, the second-largest US gas producer by volume, has been the owner of Mountain Valley Pipeline since acquiring its previous owner Equitrans Midstream in July 2024.

The gas supply deals are "two of the largest long-term physical supply deals ever executed in the North American natural gas market," EQT chief executive Toby Rice said in October 2023. The deals also underpin EQT's broader strategy of trying to sell more gas directly to large end users, including utilities, LNG export terminals and data centers, instead of selling into the volatile US spot gas market with the use of financial hedges. The deals also give EQT more exposure to pricing hubs in the southeastern US, where gas trades at a premium to gas sold within the Appalachian production region, where EQT operates.

For Duke and Southern, the long-term agreements guarantee available gas supply as the utilities convert coal-fired power generation facilities to gas-fired generators while scrambling to meet surging power demand from planned data centers running artificial intelligence software. Those drivers of gas demand are also behind US pipeline companies Williams, Kinder Morgan and Boardwalk Pipeline Partners trying to build out more gas transportation capacity into the southeast, FactSet manager of natural gas research Connor McLean told Argus. Duke Energy plans to add 5GW of new gas-fired power generation through 2029 across its territory, the company said earlier this month.

Duke Energy Carolinas and Southern Company hold most of the contracted capacity on Williams' planned 1.6 Bcf/d Southeast Supply Enhancement expansion of its Transcontinental (Transco) pipeline, which is expected to enter service in the fourth quarter of 2027, US Federal Energy Regulatory Commission filings show. That expansion project will make available new gas transportation capacity from the terminus of the Mountain Valley Pipeline in Virginia to end markets in Virginia, North Carolina, South Carolina, Georgia and Alabama. Duke Energy Carolinas, whose service territory includes North Carolina and South Carolina, holds 1 Bcf/d of contracted capacity on Southeast Supply Enhancement. Southern Company, whose service territory includes Georgia and Alabama, holds 400mn cf/d.

By selling into those regions, EQT will be taking 1.2 Bcf/d of gas it was previously selling into the comparatively low-priced Tetco M-2 market and selling it instead into the higher priced Transco zone 4 and 5 South markets. The spot price for gas in the Transco zone 5 South region — which covers gas downstream from compressor station 165 near the terminus of Mountain Valley Pipeline in Virginia to the Georgia-South Carolina border — in 2024 averaged $2.69/mmBtu, and the Transco zone 4 index — spanning Georgia, Alabama and Mississippi — averaged $2.41/mmBtu. The Tetco M-2 receipts index over the period averaged $1.67/mmBtu.

The supply deals with Duke and Southern are "the main driver" behind EQT's anticipated corporate gas price differential — or the average price at which it sells its gas relative to the US benchmark price — tightening to around 30¢/mmBtu in 2028 from an anticipated 60¢/mmBtu this year, EQT's Rice said in April.

EQT is also in talks with a dozen proposed power projects in the Appalachian production region, he said.

By Julian Hast

Related news posts

Argus illuminates the markets by putting a lens on the areas that matter most to you. The market news and commentary we publish reveals vital insights that enable you to make stronger, well-informed decisions. Explore a selection of news stories related to this one.

25/06/17

TSO error, generation loss led to blackout: Spain VP

London, 17 June (Argus) — Programming mistakes from Spain's transmission system operator (TSO) and "improper" disconnection of generating units by utilities contributed to Spain's 28 April blackout, according to Spain's vice-president and ecological transition minister, Sara Aagesen. Aagesen addressed the public following a meeting with the council of ministers, in which she presented a report on the government's findings from its investigation into the blackout that affected the Iberian peninsula on 28 April . Poor planning for voltage controls may have contributed to the blackout on 28 April. The day before the Iberian outage, Spanish TSO Red Electrica requested that 10 thermal plants be available in case of voltage issues on 28 April, Aagesen said. Market mechanisms meant the plants were not expected to be part of the 28 April generation mix, but the TSO often selects thermal units spread across Spain for back-up in case of an extraordinary event, in exchange for financial compensation. At 20:00 local time (18:00 GMT) on the night before the blackout, one of the thermal plants informed the TSO that it would not be able to operate the next day, and the TSO decided not to select another plant to take its place. The TSO "decided to reprogramme [for the next day], but not replace the need for a thermal plant", which meant the TSO went into the day of the blackout with "resources for voltage control that were inferior to what they had calculated the previous morning for the middle hours [of 28 April]". Some of the generation that disconnected from the grid in the initial stages of the blackout happened in an "improper manner". While some units automatically disconnected to protect themselves from voltage fluctuations, it was suggested that some generation units should not have done so. This created a wider "wave of over-voltage", amplifying the effects. And generation loss was detected not only in the Badajoz, Granada and Sevilla provinces as previously believed, but also in Caceres, Huelva and Segovia. This phase of the blackout took place within the space of 21 seconds. There is still no indication that a cyber attack took place on 28 April. The minister reiterated the government's stance on the matter, ruling out external influences on the events during the blackout. The full report covering the government's investigation into the blackout, approved by the council of ministers, will be published this evening. Aagesen will hold a meeting with her Portuguese counterpart, Maria da Graca Carvalho, in Portugal this evening at 20:00 local time (20:00 BST). By James Doran Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

World Bank backs Indonesia's $2.128bn clean energy push

25/06/17

World Bank backs Indonesia's $2.128bn clean energy push

Singapore, 17 June (Argus) — The World Bank has approved a $2.128bn blended finance package for Indonesia to support its financial sector reforms and accelerate investment in clean energy, it announced on 16 June. Indonesia will channel $1.5bn of the package into strengthening its financial services sector by expanding the use of digital financial tools and removing credit infrastructure constraints. It will also help remove obstacles in obtaining renewable energy technologies by reducing local content requirements. The remaining $628mn in funding — comprising a $600mn loan from the International Bank for Reconstruction and Development (IBRD), $12mn from the IBRD surplus-funded liveable planet fund, and $16mn from partners under the Sustainable Renewables Risk Mitigation Initiative — is aimed at enabling greater energy access. This blended finance programme aims to generate 540MW of solar and wind power. It is also expected to reduce power generation costs by 8pc and cut greenhouse gas emissions by 10pc, particularly in Kalimantan and Sumatra, the World Bank said. This energy programme is the first to use the World Bank's step-up loan product, which has a repayment scheme designed to attract long-term private investments, with incentives including lower interest rates during the implementation phase and further reductions if projects are refinanced after completion. By Haridas Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Trump repeats call for Russia to rejoin G7

25/06/16

Trump repeats call for Russia to rejoin G7

Washington, 16 June (Argus) — US president Donald Trump kicked off his first meeting at the G7 leaders summit in Alberta, Canada, by suggesting that Russia should be invited to rejoin the group from which it was expelled following the invasion of Crimea in 2014. The European members of the group have prepared a wide portfolio of subjects to address at the summit, including proposals to toughen G7 sanctions on Russia. European Commission president Ursula von der Leyen has proposed lowering the G7 price cap on Russian crude to $45/bl and banning imports of refined products made from Russian oil. But Trump, at the beginning of his meeting with Canadian prime minister Mark Carney today, said that "you spend so much time talking about Russia, and [Russian president Vladimir Putin] is no longer at the table, so it makes life more complicated." Expelling Russia was a mistake, Trump said, blaming the decision on former US president Barack Obama and former Canadian prime minister Justin Trudeau. The broader political background is in some ways similar to the G7 summit in 2018, also hosted by Canada, when Trump first told his fellow western leaders they should not have expelled Russia from the group. Now as then, sanctions against Russia are on the G7 agenda and the US Congress is advancing legislation to target Russia's energy exports. The key difference is that Trump in 2025 has sufficient control over the Republican majority in both chambers of Congress to block any legislation he does not like. "They'll be guided by me" on the Russia sanctions legislation, he said earlier this month, calling it a "harsh bill". "At the right time, I'll do what I want to do. But they're waiting for me to decide on what to do," Trump said. Trump has argued that imposing new economic penalties against Russia would derail the ongoing Russia-Ukrainian peace talks, even though he has acknowledged the negotiations have made no progress. Trump is scheduled to meet with Ukrainian president Volodymyr Zelenskiy on the sidelines of the G7 summit, the White House said. Not seeing eye-to-eye on trade, either Trump's fellow leaders were hoping to push him to roll back the unilateral tariffs he imposed on nearly all US trading partners, but Trump's public comments at the start of his meeting with Carney indicated no willingness to compromise on this issue as well. "I think we have different concepts," Trump said. "I have a tariff concept. Mark has a different concept, which is something that some people like, but we're going to see if we can get to the bottom of it today. I am a tariff person." Canada's strong response to Trump's tariffs made him roll back the broad tariffs he imposed on the US' North American neighbors at the beginning of his second term. The bulk of US imports from Canada and Mexico remains duty-free, but Trump's tariffs on steel, aluminum, cars and auto parts do not make an exemption for Canada and Mexico. The effective US tariff rate on imports from Canada and Mexico — the amount of duties collected from all imported goods divided by their value — rose in April to 2.3pc and 4.1pc respectively, up from nearly zero in January, according to US Department of Commerce data. Trump is separately meeting with Mexico president Claudia Sheinbaum later today. Despite a busy pace of meetings with fellow leaders, Trump extended the customary press gaggle at the beginning of his meeting with Carney to take questions on US domestic politics, including his directive Sunday night to the US immigration authorities to carry out massive raids in the largest US cities. Carney in the end had to cut Trump off, asking him to carry on with their meeting. "We have a few more minutes with the president and his team, and then we actually have to start the [G7] meeting to address some of these big issues," Carney said. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Climate groups on alert for Brazil oil auction

25/06/16

Climate groups on alert for Brazil oil auction

Sao Paulo, 16 June (Argus) — Climate change monitoring groups say that Brazil's upcoming oil and natural gas block auction will help increase CO2 emissions, a direct contradiction to the country's climate agenda. The auction, to be held on 17 June , will offer permanent concessions for 332 blocks, including several in the Amazon basin. Burning resources from these blocks could release more than 11bn metric tonnes of CO2 equivalent (tCO₂e), which exceeds the agribusiness' sector emissions over the past six years, according to non-profit climate change institute Climainfo and greenhouse gas tracking platform SEEG data. The agribusiness sector is one of the main CO2 emitters in Brazil, accounting for around 27pc of all of the country's emissions in 2023, according to SEEG. The environmentally-sensitive Foz do Amazonas offshore basin , along with other six Amazon sedimentary basins included in the offer — Parecis, Solimoes, Amazonas, Parnaiba, Barreirinhas and Para Maranhao — contain reserves of 69bn bl of oil equivalent. If exploited, these fossil fuels could release 24bn tCO₂e, nearly half of all global emissions in 2023, according to non-profit transition energy global network Fossil Fuel Treaty. Conflicting agendas The climate groups and other environmentalists argue that the upcoming auction highlights Brazil's contradictory stance on oil production and the fight against climate change. President Luiz Inacio Lula da Silva has spoken in favor of oil production several times — even clashing with environmental watchdog Ibama over a delay to award permits to drill the equatorial margin — despite also positioning himself and the country as a leaders in the fight against climate change . Brazil is one of the few G20 members that has unveiled NDCs under the Paris climate agreement, although some climate groups accuse them of lacking ambition . The country set a target of reducing its greenhouse gas emission (GHG) by 59-67pc below 2005 levels by 2035, which represents around 850mn-1.05bn tCO2e, according to the government. But many environmentalists find those two positions to be contradictory. "Brazil now has the chance to lead by example by suspending the auction and show the world...that it is ready for a just, sustainable, and fossil-free future," senior campaigner at nonprofit environmental advocacy organization Stand.earth Gisela Hurtado said. "The auction of new oil blocks in the Amazon must be canceled now," according to Mauricio Guetta, director of law and public policy at climate change NGO Avaaz, adding that the issue is "a matter of justice for indigenous peoples and the forest." "We need a global agreement to phase out oil extraction in a fair and just way," Fossil Fuel Treaty's campaign coordinator Clara Junger said. "In the meantime, the bare minimum is to stop the expansion [of production]." The federal prosecutor's office in Brazil's Para state recommended suspending the 17 June auction, or at least the exclusion of the Foz do Amazonas blocks. And climate institute Instituto Arayara also filed lawsuits challenging the bidding round. But the challenges were ignored and the auction will go ahead as planned. Brazil's oil production will peak at 5.3mn b/d in 2030, a 47pc rise from 3.6mn b/d in 2024, according to the government's 10-year plan for energy expansion. Indigenous groups worry, too Indigenous groups are also speaking out against oil exploration in Brazil and plan to use the auction and the upcoming UN Cop 30 climate conference — to be held in Para, in November— to also protest fossil fuel extraction in Foz do Amazonas. The initiative — led by the Coordination of Indigenous Organizations of the Brazilian Amazon (Coiab) with support from the Articulation of Brazil's Indigenous Peoples (Apib) and the International Coalition of the Indigenous Amazon — is pleading for a "just energy transition that prioritizes community-based renewable energy instead of predatory projects in its delimited territories." Other statements include pleas for an "official international commitment" to recognize indigenous lands as climate mitigation policies, direct access to climate resources from indigenous organizations and funds to ensure autonomy, protection of voluntary isolation. The group drafted a declaration — signed by entities representing more than 300 Brazilian indigenous groups as well as 28 segments of traditional communities and indigenous organizations of the Amazon basin — that will be presented at the Bonn climate conference next week. It is also planning protests during the 17 June auction. Brazil's NDC also commits to improving territorial, indigenous and environmental monitoring, the groups say. By João Curi Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Electronic interference rising in Mideast Gulf: UKMTO

25/06/16

Electronic interference rising in Mideast Gulf: UKMTO

Dubai, 16 June (Argus) — Electronic interference within the waters of the Mideast Gulf and the strait of Hormuz are at elevated levels, the UK Maritime Trade Operations (UKMTO) said today. The UKMTO "has received multiple reports… that there is increasing electronic interference within the waters of the Gulf," it said. Monitoring of automatic identification systems (AIS) by the UKMTO has confirmed the finding, it said. The warning comes during a new escalatory cycle between Israel and Iran that was triggered by a series of air and missile strikes by Israel on several key Iranian military and nuclear sites on 13 June. Iran responded with ballistic missile and drone strikes on military targets in Israel, including the Kirya complex in Tel Aviv, which houses the defence ministry headquarters. The two sides have been exchanging missile fire with increasing intensity ever since, with critical energy infrastructure being hit. The UKMTO said electronic interference across the wider region has been rising in this period, which is "having a significant impact on vessels' positional reporting" through automated systems. It advised vessels transiting through Mideast Gulf and nearby waters to do so "with caution" and continue to report incidences of electronic interference. By Nader Itayim Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.

Business intelligence reports

Get concise, trustworthy and unbiased analysis of the latest trends and developments in oil and energy markets. These reports are specially created for decision makers who don’t have time to track markets day-by-day, minute-by-minute.

Learn more