EQT Corporation’s LNG Strategy – Wellhead to Water
- Timothy Beggans
- Sep 16
- 1 min read
EQT Corporation, the largest U.S. natural gas producer, is executing a “wellhead-to-water” LNG strategy aimed at capturing international premiums and diversifying beyond domestic markets. The plan, highlighted in the Q2 2025 Earnings Presentation and recent announcements, rests on long-term liquefaction capacity secured via 20-year Sale and Purchase Agreements (SPAs).
Core Moves in 2025:
Commonwealth LNG (LA): 1.0 MTPA under SPA, FID expected 2025.
Rio Grande LNG Train 5 (TX): 1.5 MTPA under SPA.
Port Arthur LNG Phase 2 (TX): 2.0 MTPA under SPA.
Together, these deals secure ~4.5 MTPA of export capacity—key steps toward EQT’s goal of global market integration while maintaining an investment-grade balance sheet.
Why It Matters:
Revenue Growth: LNG trades at a premium to Henry Hub; EQT forecasts ~$250M annual free cash flow uplift by 2029.
Market Diversification: Reduces reliance on Appalachia basis and provides downside protection through long-term SPAs.
Energy Transition Role: EQT leverages its low-cost, low-emission supply to displace coal abroad, appealing to buyers focused on decarbonization.
Scale Advantage: Resource depth and pipeline expansions (MVP Boost, Southgate) create a vertically integrated model.
Risks Ahead:
LNG projects face FID delays, regulatory scrutiny, and volatile global pricing. Netbacks could fall below Appalachian indices in weak markets, but EQT’s flexibility, hedging, and tolling structures help mitigate this risk.
EQT’s LNG strategy positions it as a supplier of choice in a world where U.S. exports are projected to reach ~34 Bcf/d by 2050—supporting both domestic growth and global energy security.
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