North American private equity giant Blackstone is set to acquire minority stakes in EQT Corporation’s interstate natural gas pipelines for approximately $3.5 billion.

If finalized, the deal would significantly reduce EQT’s debt burden accumulated from its acquisition of Equitrans Midstream earlier this year. 

Blackstone plans to invest through its credit and insurance arm, aiming to secure a steady income. 

The deal will also enable Blackstone to gain exposure to energy infrastructure, including the contentious Mountain Valley Pipeline, with EQT retaining operational control of the pipelines to ensure continued service. 

EQT’s pipeline network spans 940 miles and boasts a capacity of 4.4 billion cubic feet of natural gas per day. In July, the company reported nearly $700 million in adjusted EBITDA from these pipelines.

By divesting minority stakes, EQT aims to reduce its $14 billion debt load by $5 billion through a combination of operational cash flow and asset sales. The company has already agreed to sell $1.1 billion in assets to Equinor.