EQT, Appalachia’s largest natural gas producer, has been an active market maker lately. The producer signed several supply deals this summer with utilities and data center developers that should allow it to expand production in the coming years.
In June, utilities Duke Energy (DUK) and Southern Co. (SO) reportedly signed 10-year supply contracts with EQT totaling 1.2 Bcf/d (800 MMcf/d and 400 MMcf/d respectively), scheduled to begin service in 2027. EQT had previously announced the deals with “investment-grade utilities,” but the specific companies weren’t initially revealed. Both Duke and Southern serve the Southeast and have reserved capacity on Williams’ (WMB) Southeast Supply Enhancement (SESE) project on the Transcontinental (Transco) pipeline. The SESE expansion will add 1.6 Bcf/d of southbound capacity beginning in 4Q27.
East Daley Analytics expects a significant share of the gas moving through the expanded Transco system will come from Mountain Valley Pipeline (MVP). EQT took a 48% majority interest in MVP last year as part of its $5.5B acquisition of Equitrans Midstream and holds nearly 1.3 Bcf/d of capacity on the pipe. MVP is currently operating below capacity due to downstream constraints, but the SESE expansion, plus a compression expansion project dubbed MVP Boost, should allow 2.5 Bcf/d of egress to flow south from the Northeast. The pipeline flowed 1.2 Bcf/d on average in September, so volumes could potentially double from here once all the infrastructure is in place.
EQT also announced supply deals with data center developers to provide gas to sites in the Appalachian region. In July, Homer City Redevelopment and the Frontier Group of Companies announced agreements with EQT to supply gas to data center projects in western Pennsylvania. The two deals combine for nearly 1.5 Bcf/d of supply, allowing EQT to increase production without dealing with egress constraints that typically limit Northeast producers.
In total, EQT could grow its gas production over 2.6 Bcf/d by the end of the decade to serve the latest customers, an ~40% increase from its 6.2 Bcfe/d of production in 2Q25. On top of potential supply growth, the new contracts diversify EQT’s portfolio and market exposure.
The upside is bullish for several G&P systems that serve EQT in the Marcellus and Utica. Clients can use the Producer to System dashboard in Energy Data Studio to screen for candidates. EQT produces about 40% of its gas on Equitrans systems it now owns, but WMB and MPLX are also major counterparties for EQT (see figure above from Energy Data Studio breaking down EQT volumes by G&P system). Private operators Xcl Midstream and Blue Racer Midstream also service EQT acreage and could see a lift if the producer ramps up development.
These deals brokered by EQT could put the operator on track to overtake Expand Energy (7.2 Bcf/d in 2Q25) as the largest gas producer in the US by 2030. Diverse growth opportunities and the ability to capitalize in a constrained market leaves EQT in a strong position to continue building as it works to regain its crown. – Ian Heming Tickers: DUK, EQT, MPLX, SO, WMB.
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