EQT Midstream Partners LP (EQM) will build a natural gas header pipeline to support Range Resources Corp.’s (RRC) Marcellus and Utica dry gas development, the company said July 23. The pipeline in southwestern Pennsylvania will be built through a definitive agreement.

The pipeline will provide more than half a billion cubic feet per day of firm capacity and is backed by a long-term firm capacity reservation commitment. EQM will invest about $250 million to build 32 miles of pipeline and install about 32,000 horsepower of compression.

EQM said the project will be completed in two phases. Phase One is scheduled to be in service by third-quarter 2016, and Phase Two is scheduled to be in service by mid-year 2017. Most of the capital will be invested between 2016 and first-half 2017, the company added.

“Our growing pipeline footprint distinctly positions us to provide cost-effective midstream services to Appalachian Basin producers; and with this project in particular, we are pleased to build upon our relationship with Range Resources. As we continue to expand and extend our pipeline network through organic projects such as the Ohio Valley Connector and the Mountain Valley Pipeline, we are building a premier natural gas hub that offers producers in the Marcellus and Utica access to a variety of demand markets,” Randy Crawford, COO, said.

EQT Midstream Partners LP is based in Pittsburgh.

Range Resources Corp. is based in Fort Worth, Texas.