The proximity of the order of magnitude molecular mean free path and pore sizes in nanopores leads to remarkable interactions between molecules and walls. In such systems, the thermodynamic property and the transport behavior of fluids deviate from those at bulk conditions. Molecular dynamics (MD) simulation may be used to investigate the effects of confinement on fluid physics in nano-size pores. However, translating these subscale observations into a larger scale of interest remains a challenging task. In this work, we propose a modified extension of Peng-Robinson equation of state (PR-EOS) motivated and guided by MD simulation results. The shift of critical properties, i.e., pressure and temperature, are evaluated independently. A temperature dependent parameter is introduced to account for the existence of capillary pressure in the two-phase region. This formulation is capable of capturing the shift in critical properties as well as density phase diagrams under various confinement scenarios. We incorporate the proposed EOS in the lattice Boltzmann method (LBM) to study coupled confined phase behavior and transport of methane in nano-size slit pores. Adsorptive strength is determined such that the resulting density ratio matches that from MD simulation. Results indicate that the use of the proposed EOS leads to smaller fluid velocities compared to PR-EOS. This effect is due to stronger interactions between fluid particles under confinement. Also, results show that transport characteristics are impacted by the pressure of the system: in systems with a relatively low pressure, transport seems to be dominated by Knudsen diffusion; however, at a higher pressure, the contribution from viscous flow increases as the pore widens while the influence of Knudsen and surface diffusion diminishes.