DTE Energy to purchase natural gas midstream assets

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
DTE Energy to purchase natural gas midstream assets

DTE Energy has announced it will purchase midstream natural gas assets in support of the company's strategy to continue to grow and earn competitive returns for shareholders.

The agreement calls for DTE to purchase 100 percent of Appalachia Gathering System (AGS), located in Pennsylvania and West Virginia, and 40 percent of Stonewall Gas Gathering (SGG), in West Virginia, from M3 Midstream. In addition, DTE will purchase 15 percent of SGG from Vega Energy Partners.

The combined purchase price for the assets to be acquired by DTE is US$1.3 billion

These assets will become part of the DTE's non-utility Gas Storage and Pipeline business which currently owns and manages a network of natural gas gathering, transmission and storage facilities serving the Midwest, Ontario and Northeast markets.

These assets gather natural gas produced in the Appalachia region and provide access to multiple markets, including the Great Lakes region, through interconnections with Columbia Gas Transmission, Texas Eastern Transmission and the NEXUS Gas Transmission project currently being developed by DTE and Spectra Energy. Demand for natural gas in the Great Lakes region is expected to increase significantly, driven by coal to gas conversions for electricity generation and economic growth. The low-cost natural gas supply from the Marcellus/Utica region is expected to serve this growth and displace higher cost alternatives.

These transactions, expected to be completed in Q4 2016, will not materially change DTE's current business mix.  

The new natural gas infrastructure will:

  • Complement our existing gas midstream business
  • Provide a foundation for new value creation with significant growth potential
  • Expand our footprint in the most prolific production region in the country spanning the heart of the SW Marcellus/Dry Utica
  • Provide solid economics underpinned by long term contracts and high quality reserves

Wells Fargo Securities, LLC has served as the exclusive financial advisor to DTE and Wells Fargo Bank NA has provided committed financing for the transaction.

Gerry Anderson, CEO of DTE Energy said:

"These transactions will significantly increase our midstream presence in the Appalachian basin. The acquired assets are in a productive area of the Southwest Marcellus/Utica region and have expansion potential.  These acquisitions align with DTE's existing strengths in managing natural gas midstream assets."

Jerry Norcia, president and COO, DTE Energy stated:

"The decision to purchase these assets is consistent with DTE's growth plans. These two  systems are complementary to our current asset portfolio and will provide synergies over time."

List of country news

Country news

  • October 04, 2016

    Sunoco Logistics announces acquisition of Vitol’s Crude Platform in the Growing Permian Basin

    Sunoco Logistics Partners L.P. and the Vitol Group have announced the acquisition of Vitol’s Permian Basin crude oil system in West Texas for approximately US$760 million plus working capital. Read more
  • October 04, 2016

    EDP Renováveis established new institutional partnership structure for 328 MW in the US

    EDP Renováveis, S.A. (EDPR), through its fully owned subsidiary EDP Renewables North America LLC, has secured US$342 million of institutional equity financing from two major financial institutions, in exchange for an interest in two wind facilities located in US. Read more
  • October 04, 2016

    Tenaska acquires 470-megawatt wind development portfolio

    Tenaska has acquired a 470 MW wind development portfolio in the Upper Midwest (US). Read more
  • October 04, 2016

    SoCore Energy to acquire 22 Minnesota solar projects from SunEdison

    SoCore Energy, a developer and operator of commercial and distributed solar generation and a subsidiary of Edison International, has announced that it has agreed to acquire equity interests in 22 community solar garden development projects in Minnesota (US) as part of the SunEdison bankruptcy proceedings, subject to certain conditions. Read more
  • September 29, 2016

    8point3 Energy Partners to acquire 49 percent stake in 102-MW Henrietta Solar Project

    8point3 Energy Partners has announced that it has entered into an agreement to acquire SunPower Corp.s 49 percent stake in its 102 MW Henrietta solar project for US$134 million. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.