EQT Corporation (NYSE:EQT) is one of the best inexpensive stocks to buy according to hedge funds. On September 8, EQT Corporation announced a 20-year Sale and Purchase Agreement/SPA with Commonwealth LNG. Under this agreement, EQT has secured 1 million tonnes per annum/MTPA of liquefaction capacity at Commonwealth LNG’s export facility, which is currently under development on the Gulf Coast near Cameron, Louisiana.
The SPA will only become fully effective after a final investment decision is made on the project. According to the terms of the agreement, EQT will purchase the liquefied natural gas on a free-on-board/FOB basis at a price indexed to the Henry Hub. This allows EQT to market and optimize its own cargoes internationally.
This deal is part of EQT’s strategy to expand its wellhead-to-water approach and establish a diversified portfolio to connect U.S. natural gas supply with global demand. This agreement, along with a recent deal with NextDecade, brings Commonwealth’s committed long-term capacity to 5 MTPA, or approximately 53% of its total capacity. Commonwealth’s facility has a total capacity of 9.5 MTPA, with first LNG production targeted for 2029.
EQT Corporation produces, gathers, and transmits natural gas. It sells natural gas & natural gas liquids to marketers, utilities, and industrial customers located in the Appalachian Basin.
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This article is originally published at Insider Monkey.
