EQT’s Equitable Gas Company which owns about 6,437.3km of pipelines, serves about 275,000 customers in Pennsylvania, West Virginia, and Kentucky in US.
EQT chief executive officer David Porges said the company will now concentrate and reinvest in its gas production and midstream businesses.
"The proposed transaction provides capital to accelerate the monetization of our reserves beyond 2013 and also adds to our Marcellus midstream assets," Porges added.
As a part of the deal, EQT will also receive about 321.8km of regulated transmission pipelines, and four storage pools with a total of 15.1 billion cubic feet of working gas capacity.
The midstream assets are situated across counties in Pennsylvania and will be connected to EQT’s existing transmission assets and increase its transportation and storage capabilities.
Peoples Natural Gas has also entered into a long-term supply agreement with EQT for gas transmission, supply, and storage services.
Peoples Natural Gas president and CEO Morgan O’Brien said the deal will help aggregate more customers and attract marketers to create a competitive atmosphere to serve customers.
"Combining the companies’ respective pipeline systems will result in a more streamlined and efficient operating system for customers," O’Brien said.
The transaction is expected to receive all the regulatory clearances by the end of 2013.
