Equitrans Midstream Corporation has operational focus on gas transmission and storage systems, gas gathering systems, and water services that support natural gas development and production across the Appalachian Basin. Our primary operating areas of Pennsylvania, Ohio, and West Virginia are located in one of the most abundant natural gas basins in the world, and our energy infrastructure assets provide a strategic link between supply sources and major demand markets in the United States.
About This Report, Scope, and Boundary
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Location of operations
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Entities included in sustainability reporting
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Activities, value chain and other business relationships
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Information on employees and other workers
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Collective bargaining agreements
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Total metric ton-kilometers of: (1) natural gas, (2) crude oil, and (3) refined petroleum products transported, by mode of transport
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2-6
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We are pleased to share our 2023 Corporate Sustainability Report (CSR), which is reported in accordance with the Global Reporting Initiative (GRI) Standard for the period of January 1, 2022 – December 31, 2022. This fourth, annual CSR represents the activities of Equitrans Midstream Corporation and its wholly owned subsidiaries, Eureka Midstream Holdings, LLC (Eureka Midstream), and certain information related to the Mountain Valley Pipeline (MVP) project, as noted.
With the exception of greenhouse gas (GHG) emissions and energy consumption, the environmental, social, and governance (ESG) metrics presented in this report include 100% of Equitrans Midstream Corporation and Eureka Midstream operations and exclude projects in progress, such as the MVP and Ohio Valley Expansion (OVCX) projects, unless otherwise specified. Beginning in 2022, the organizational boundary for our GHG emissions and energy data has been updated from an operational control approach to an equity share approach, which is further described in the Climate Change & GHG Emissions section.
Our Company
Equitrans Midstream Corporation (Equitrans or Company) is an independent, publicly traded midstream company and, as of year-end 2022, the Company held a 60% interest in Eureka Midstream, a 47.2% interest in the MVP project, and a 47.2% interest in the MVP Southgate project. We operate exclusively in the United States, with our assets primarily located in southwestern Pennsylvania, northern West Virginia, and southeastern Ohio — in the prolific natural gas development areas known as the Marcellus and Utica Shales.
Equitrans’ assets within the Appalachian Basin, and our growth projects, including MVP and OVCX, are designed to transport natural gas to national, regional, and local markets. Our customers are natural gas producers, commercial and industrial users, marketers, and local distribution companies (LDCs). Equitrans’ three primary operating segments include:
Gathering
As of December 31, 2022, the gathering system, inclusive of Eureka Midstream’s gathering system, included approximately 1,180 miles of high-pressure gathering lines and 135 compressor units with compression of approximately 493,000 horsepower and multiple interconnect points with the Company’s transmission and storage system and to other interstate pipelines. On average, our gathering operations collected 7,695 billion British thermal units (BBtu) of natural gas per day during 2022, which is equivalent to 7.42 billion cubic feet (Bcf) per day, using the U.S. Energy Information Administration’s (EIA) 1,037 Btu/cubic feet heat conversion factor.
Transmission
As of December 31, 2022, Equitrans’ transmission and storage system included approximately 940 miles of Federal Energy Regulatory Commission (FERC)-regulated interstate pipelines that have interconnect points to seven interstate pipelines and multiple LDCs. At year-end 2022, our transmission and storage system was supported by 43 compressor units, with a total throughput capacity of approximately 4.4 Bcf per day and compression of approximately 136,000 horsepower; and 18 associated natural gas storage reservoirs, which had a peak withdrawal capacity of approximately 820 million cubic feet (MMcf) per day and a working gas capacity of approximately 43 Bcf. In 2022, Equitrans’ transmission operations transmitted a daily average of 3,173 BBtu, which is equivalent to 3.02 Bcf, using the EIA’s 1,037 Btu/cubic feet heat conversion factor.
Water
As of December 31, 2022, Equitrans’ freshwater system included 21 freshwater impoundment facilities and approximately 201 miles of pipeline that deliver fresh water from local municipal water authorities, the Monongahela River, the Ohio River, local reservoirs, and several regional waterways.
In 2021, the Company began construction of a mixed-use water system in Greene County, Pennsylvania, to transport produced, recycled water. Construction continued in 2022 with one water storage facility being placed in-service. As of year-end 2022, the Company’s water system distributed a total of 1,139 million gallons of water to customers, including both fresh water and produced water.
As of the date of this report, the remaining portions of the mixed-use water system are targeted to be substantially complete in 2023. Once complete, the mixed-use water system is designed to include approximately 70 miles of buried pipeline and two water storage facilities with capacity of 350,000 barrels, as well as two interconnects with the Company’s existing Pennsylvania freshwater systems.
Employee Profile
Equitrans collects employee data through our human resources information system (HRIS), and we gather specific contractor information through our contract worker management system. As of December 31, 2022, Equitrans employed 766 people. None of our employees are covered by collective bargaining agreements.
Total Employees by Gender
Target
1000 900 800 700 600 500 400 300 200 100 0
801
626
175
777
597
180
766
580
186
766
574
192
2019
2020
2021
2022
Male
Female
Total Employees by Location
Target
1000 900 800 700 600 500 400 300 200 100 0
801
609
140
46
6
777
551
161
46
19
766
514
186
35
31
766
500
178
41
47
2019
2020
2021
2022
Pennsylvania1
West Virginia1
Ohio1
Other1, 2
1) Work state/location is based on an employee’s taxable earnings, as reported to the U.S. Internal Revenue Service and each respective state’s tax department
2) Other Locations may include California; Colorado; Connecticut; Florida; Georgia; Indiana; Kentucky; Maryland; Minnesota; North Carolina; New Jersey; New York; Oklahoma; South Carolina; South Dakota; Tennessee; Texas; and Virginia
Recognizing the potential benefits of a flexible workplace model, Equitrans conducted a workplace modernization survey in June 2020. As part of the survey, office-based employees were asked to select their workplace preferences in line with the options available for their role, based on a set of three “workplace personas” (anchor, flex, and remote). Since implementing our workplace personas, the number of employees working in “Other U.S. Locations” has increased. More information on Equitrans’ person-centric work environment can be found in the Workforce Culture section of this report.
In addition to our employees, Equitrans hires multiple third-party contractors who are responsible to carry out the following duties:
Inspectors: Verify that construction-related tasks follow relevant environmental, coating, corrosion, and welding guidelines
Landmen: Analyze court records, access agreements, rights-of-way agreements, and real estate documents, as well as negotiate and acquire fee properties and other contracts
Abstractors: Study copies of records, documents, estates, and other relevant flings from local, state, and federal agencies
Systems Analysts: Research specialized business areas and assist in creating and incorporating Company technology projects
Business Strategy
As described in the Company’s public securities filings, Equitrans’ principal strategy, which the Company expects will drive future growth and investment, is to achieve greater scale and scope, enhance the durability of its financial strength, and continue working to position itself for a lower carbon economy. Implementation of our strategy includes continuing to pursue our organic growth projects, continuing to leverage our existing assets, and prudently investing resources in our ESG- and sustainability-oriented initiatives. Equitrans also continues to focus on maintaining and strengthening its balance sheet. Additionally, we periodically evaluate strategically aligned inorganic growth opportunities.
Equitrans Midstream: Vision, Mission, and Core Values
Our organization was built upon our Vision, Mission, and Core Values, which represent who we are as a Company today and whom we strive to be in the future.
Our Vision
To be the premier midstream services company in North America — providing safe, reliable, sustainable, and innovative infrastructure solutions for the energy industry.
Our Mission
We move the energy that keeps America moving — providing innovative solutions and reliable energy infrastructure services in a safe, efficient, and responsible manner. We operate with integrity, accountability, and transparency to:
Deliver sustained value for our customers and shareholders
Provide an engaging workplace for our employees
Preserve and protect the environment
Support the communities where we live and work
Our Core Values
The principles that guide our behaviors and decisions.
SAFETY: Compliance is just a start.
We are committed to responsible operations that will safeguard the environment and protect the health of our employees, contractors, and communities — always.
INTEGRITY: Doing the right thing.
We will act ethically and demonstrate accountability for our actions, behaviors, and decisions. If something goes wrong, we will own it and make it right.
COLLABORATION: A reliable partner inside and out.
We will cultivate an inclusive, respectful work environment that values differing perspectives and encourages the power of teamwork, customer service, and accountability.
TRANSPARENCY: Communication is key.
We will listen and clarify understanding before acting. We will communicate openly with each other — and with our customers, shareholders, and other external stakeholders.
EXCELLENCE: In all we do and how we do it.
We will operate in relentless pursuit of flawless execution to develop employee capabilities, produce high-quality work, and achieve sustainable results. We will keep our commitments.
Highlight Stories
Employee Generosity — Giving Back To Our Communities
Equitrans Midstream is committed to making a difference in our communities, and theUnitedWayis just onewaywe can join together to support those in need. For our 2022 campaign, we selected theUnitedWayof Washington Countyas our primary United Way affiliate, which aligns with our Company headquarters’ location. Employees also had the opportunity to donate to theUnitedWayof their choice by selecting from otherUnitedWayaffiliates located in our primary operating states of Ohio, Pennsylvania, or West Virginia.
To jump start our 2022 United Way campaign, we held a basket raffle during our all-employee meeting and holiday celebration in Morgantown, WV. Employee teams donated 27 individual baskets, with raffle ticket sales raising more than $11,000 in donations. This was matched dollar-for-dollar by our Corporate Local Giving Program,jump-starting our 2022 campaign with a contribution of more than $22,000 to the United Way.
Through our official United Way campaign, which is conducted annually via individual, online donations, Equitrans employees pledged roughly $57,000 in individual contributions, which was matched dollar-for-dollar through the Equitrans Midstream Foundation for a total of approximately $114,000. Additional donations were made outside of our formal campaign, and, based on totals provided by the United Way of Washington County — Equitrans’ contributions totaled more than $169,000 in 2022 — making us the top contributor in their Chairman’s Award for Top 5 Workplace Giving Campaign Partners program.
Equitrans also received the agency’s Campaign Excellence Award, which is presented to a workplace giving campaign partner that puts forth extra effort in running their annual workplace giving campaign. In addition to our traditional campaign, this award was due in part to the hosting of our special to basket raffle event, which engaged all employees and included matching funds by the Equitrans Midstream Foundation and the Company’s Corporate Local Giving Program.
The United Way of Washington County’s mission is to unite people, resources, and organization to improve lives in Washington County. Through Equitrans’ support, the various programs at United Way will be funded to serve the most pressing needs in vulnerable populations within our local operating areas. Our donation is a powerful force for change, and we thank our employees for their generosity and support!
Inspiring the World to Reuse
As we broaden our sustainability investments, we are especially proud of our partnership with Fill It Forward, an organization whose mission is “to inspire the world to reuse” by focusing on the elimination of single-use waste, such as plastic bottles and bags. In 2021, Equitrans partnered with Fill it Forward as a means of engaging and educating employees, while at the same time elevating our many ESG (environmental, social, and governance) initiatives.
In late 2021, we launched our Fill It Forward campaign with a custom holiday gift box for employees that included reusable tote bags and bottles with individual ‘scan tags’ that acted as a re-use tracker. When the tags were scanned, the data was automatically uploaded to Equitrans’ custom group on the Fill It Forward app and was used for tracking our collective impact, such as waste diverted, emissions saved, and how much ocean pollution was prevented.
Along with helping to eliminate waste, there was a charitable component to our Fill It Forward campaign. Each employee scan unlocked a $1 donation for every reuse, which contributed funds to our chosen charitable organization — DigDeep’s Appalachia Water Project. The funds collected were used to provide clean drinking water through the installation of meter-to-home water lines for families in southern West Virginia who currently have unsafe, limited, or no water at all. Our goal was to generate 10,000 scans and raise $10,000 for the Appalachia Water Project, and we were thrilled to have reached our goal roughly six months into the campaign. In addition, as part of Equitrans’ annual holiday giving initiatives, we made a separate donation of $20,000 to the Appalachia Water Project.
Thanks to the efforts of our employees — Equitrans was the proud recipient of Fill It Forward’s Changemaker Award for 2022. This unique ESG-focused campaign was a means of engaging and educating employees, while also elevating our sustainability efforts. Together with Fill It Forward, we believe that the simple act of reusing is the first step towards creating a sustainable mindset for all generations — and as an added benefit — being able to connect families with access to safe water will ensure the health and success of communities for years to come.
Equitrans Midstream’s Impact
19,968.42
lbs of emissions saved
617.58
lbs of waste diverted from landfill
11,734.02
kwH of power saved
123.52
lbs of ocean pollution prevented
20,586 total reuses
Source: Statistics calculated by Fill It Forward, as of year-end 2022
Productivity … Redesigned
As the world continues to adapt and evolve, companies are re-evaluating their management approach and taking into consideration the individual needs and circumstances of their employees to create work-life harmonization. With the implementation of person-centric leadership practices, Equitrans took the opportunity to redesign how we operate, improving performance and engagement and increasing our ability to compete for talent.
In early 2020, Equitrans began to recognize the benefits of a flexible workplace model. We initiated a deeper dive into the concept by soliciting survey feedback from office-based employees regarding their preferred ‘workplace persona’ preferences (anchor, flex, and remote). Today, we have fully embraced a ‘person-centric’ work environment, which takes into account the physical, cognitive, and emotional needs of employees and encourages them to find the best integration between their work and personal lives. With this approach, work is no longer about where an employee is located, but about the actual work an employee does. Importantly, employees are evaluated on work produced, without consideration to where or how they worked.
Rather than conforming to legacy practices or location constraints, Equitrans’ person-centric work model is defined by flexible work experiences, intentional collaboration, and empathy-based management. For our field-based employees, who are primarily required to work onsite, we rolled out flexible work guidelines to demonstrate our commitment to our person-centric work approach. Upon implementation of this new work model, roughly 44% of employees are working remotely, 25% split their time between working remotely and at an Equitrans location, 31% work from an Equitrans location full-time, and less than 1% work part-time.
We expect our person-centric model will continue to improve employees’ satisfaction and retention, as well as help to expand our talent pool. Since implementing our workplace personas, the number of employees working in other U.S. locations has increased, and we have been able to improve gender diversity. As part of our new work model, we periodically conduct employee surveys and focus groups to obtain feedback, using the results to adjust our workplace practices, as needed.
Office-Centric vs Person-Centric Work Design
Office-Centric
Person-Centric
Provide consistent work experiences to deliver equality of experience
Provide flexible work experiences to deliver equality of opportunity
Enable serendipitous collaboration to deliver innovation by chance
Enable intentional collaboration to deliver innovation by design
Drive visibility-based management to deliver performance by inputs
Drive empathy-based management to deliver performance by outcome
Proactive Project Outreach
Equitrans Midstream relies on proactive community engagement and feedback to foster a culture of trust, inclusivity, and transparency, and we view our projects and operations through a lens of responsibility and accountability. In keeping with this belief, environmental justice is an important component of our stakeholder outreach activities. Our Environmental Justice Policy lays the foundation of our commitment to provide for the fair treatment and meaningful involvement of all people in any public process involving our operations, regardless of race, color, national origin, or income.
It is often said that actions speak louder than words, which was the case for the outreach team working on our Ohio Valley Connector Expansion (OVCX) project. As a critical component of the project’s pre-planning phase, our team contracted the services of an outside vendor that specialized in the identification of environmental justice communities located near the project. After consulting with the FERC, the EPA, and our contracted environmental justice specialists, Equitrans extended the OVCX project’s landowner contact radius an additional 0.5 mile to maximize the outreach efforts and ensure all stakeholders were personally aware of and involved with the project details.
In addition to our land team contacting property owners and community members within the expanded radius, the OVCX outreach team conducted multiple pop-up educational meetings and community open houses; solicited pre-paid comment and suggestion cards; distributed various informational mailings; and remained engaged with the community every step of the way by responding to questions and feedback. To better understand the needs and challenges faced by those living near the proposed project, we also met with local organizations and elected officials, as well as other key decision makers. These additional, proactive measures taken by our OVCX outreach team went above and beyond regulatory requirements to ensure consistent communication and transparency throughout the project’s lifecycle.
Our Bees Are All The Buzzzzz
At Equitrans, there is a clear tone that begins at the top — sustainability is critically important to the world we live in and is also essential to the future growth of our Company. In 2023, E-Train celebrated Earth Day with the kickoff of a two-year sustainability partnership with Alvéole. Alvéole focuses on bee-friendly communities for greener cities by installing honey bee hives at business locations across the world to foster environmental awareness and educate communities on the importance of creating sustainable bee populations. In fact, according to the U.S. Dept. of Agriculture, honey bees help to produce one-third of our food supply by pollinating $15 billion worth of crops in the U.S. each year, including more than 130 types of fruits, nuts, and vegetables.
Through our new partnership with Alvéole, E-Train is hosting and supporting two honey bee hives at each of our Canonsburg, St. Clairsville, and Waynesburg offices. The hives were installed in late spring, and the bees have begun to collect nectar and pollinate thousands of flowers and plants. With the help of our assigned Alvéole beekeeper, the hives will become established, and the bees will re-emerge every spring to pollinate flora to grow food and produce E-Train’s own locally sourced honey.
Equitrans and Alvéole also established “MyHive” microsites for each of E-Train’s office locations. The MyHive sites are located on Equitrans’ intranet, and employees can access the sites at any time to find educational honey bee information and receive updates on our hives. As an added benefit, Alvéole beekeepers will conduct various on-site informational events for employees, such as beeswax candle making and honey extraction sessions.
As we continue to safely and responsibly operate our network of natural gas pipelines, water lines, and compressor stations, it’s important to remember that the decisions we make today have a lasting and positive impact on future generations. On Earth Day and every day, we must hold ourselves to a higher standard by embracing our responsibility to operate in a manner that minimizes impacts on our natural resources and — above all else — we must keep safety our top priority, always.
Enhancing Methane Monitoring
In January 2023, Equitrans announced its status as a founding member of the newly formed Appalachian Methane Initiative (AMI), a coalition of regional natural gas operators committed to further enhancing methane monitoring throughout the Appalachia Basin and facilitating additional methane emissions reduction in the region. The AMI coalition was formed ‘for the purpose of establishing and effectuating a methane monitoring, reporting, and mitigation network throughout the geographic area known as the Appalachian Basin.’
AMI’s efforts are intended to promote greater efficiency in the identification and remedy of potential fugitive methane emissions from operations in the Appalachian Basin through coordinated satellite and aerial surveys on a geographic-basis as opposed to an operator-specific basis and taking into account advanced methane monitoring and reporting frameworks. Additionally, the coalition will seek to coordinate and share best practices in mitigating methane emissions from natural gas operations, including production and midstream, and collaborate on activities and monitor results through transparent, publicly available reporting.
For much of 2023, AMI is focusing on developing and implementing a pilot monitoring program to cover select areas of interest within the Basin’s major operating footprints, with the goal of working to develop and implement a full-Basin monitoring plan in 2024.
As part of AMI’s official launch,a news release was issued by the coalition’s founding members. We believe our membership in AMI will support our ongoing methane reduction efforts and complement our many ESG initiatives, and we look forward to working with other coalition members on advancing AMI’s initiatives.
Managing and Protecting Pipeline Integrity
Identification and management of landslide risk is a vital aspect of Equitrans’ daily work activities; however, the risk of a landslide is not limited to the midstream industry. Landslides can occur in any type of terrain, including both hills and valleys, and can be associated with any type of ongoing construction or pre-existing land disturbance. Natural factors such as rainfall and surface runoff water can amplify their frequency or severity; and left unmanaged, landslides have the potential to impact our environment. For Equitrans, this impact may include creating unnecessary strain on our underground pipelines, which are typically located in a variety of terrains as compared to our non-linear assets. To avoid unsafe situations and protect the integrity of our pipeline network, our engineering team uses a multi-faceted approach to aggressively identify and manage areas at risk for potential landslides.
To identify potential land movement near our assets, Equitrans’ engineers utilize aerial patrols, drones with photogrammetry change detection, and routine on-site inspections — or, if required, a combination of these methods may be used. In each case, we monitor our pipeline rights-of-way looking for any indication of unstable soil, such as discoloration, downed trees, or other data that could indicate a change in topography. Following a thorough evaluation of each asset location or suspected slide area by our engineering and compliance teams, we assign a priority ranking to indicate the potential for further movement and any risk to the environment or to the integrity of the pipeline.
As a final step, Equitrans pairs the geographic location data of known and suspected landslides with National Oceanic and Atmospheric Administration (NOAA) information. This analysis is done on a daily basis and allows Equitrans to identify rainfall events that could affect the stability of existing slide-prone areas and to rapidly respond and investigate when conditions change on the ground. In accordance with a defined framework that accounts for slide priority and rain severity, personnel may be deployed to conduct visual, on-site inspections. Beyond rainfall data, we also monitor temperature data to understand freeze thaw cycles and similarly deploy personnel to evaluate sites under changing conditions. Through continued use of these evaluation tools — aerial inspections, drone imaging, and manual site inspections — Equitrans remains committed to environmental and operational safety through its robust process to identify and manage potential landslides.
In addition, Equitrans launched a Light Detection and Ranging (LiDAR) pilot program in 2020 to aid in the enhanced detection of potential landslides along our pipeline rights-of-way. Today, we conduct semi-annual LiDAR flights across thousands of miles of pipeline. The adoption of LiDAR technology and utilization of our enhanced construction standards are collectively designed to improve Equitrans’ ability to mitigate landslide risk for the safety of our employees and communities, and for the benefit of our customers, investors, and the environment.
Renewable Electricity and Scope 2 Emissions
With the publication of the Company’s Climate Policy in 2021, Equitrans established targets that include a 50% reduction in Scope 1 and 2 methane emissions by 2030 and a 50% reduction in Scope 1 and 2 total greenhouse gas (GHG) emissions by 2040. Since this time, Equitrans has aggressively focused on reducing its direct Scope 1 emissions, which included the replacement of pneumatic devices and the installation of vent gas recovery units during 2022. These activities are expected to directly contribute to a reduction in methane emissions from operations. Additional information and details on the Company’s reduction efforts can be found in the GHG Emissions and Climate Change section of this report.
Equitrans is also working to reduce its indirect Scope 2 emissions, which are emissions related to purchased utilities, such as electric generation and heat. One method of aiding in the overall reduction of indirect Scope 2 emissions is through the purchase of certified renewable energy credits or RECs. Each REC is a certificate that corresponds to the environmental attributes of electricity that is generated from a zero-emissions renewable source and delivered to the electricity grid.
For the year-ended 2022, Equitrans purchased and retired 35,000 Green-e Energy certified RECs for its operations. These purchased RECs represent 35,000 megawatt hours (MWh) of generated renewable energy, which in this case was from wind energy generated in Oklahoma and delivered to the corresponding regional electric grid. By purchasing and retiring these RECs, Equitrans is taking credit for the renewable energy generated and ensuring that it is not accounted for elsewhere in the country. By purchasing these certified RECs, Equitrans was able to account for 100% of its purchased electricity through the supply of zero-carbon renewable energy, as related to its indirect Scope 2 GHG emissions.
