Gas, New Projects, O&M

DTE Midstream acquiring Haynesville Shale gas pipeline, gathering assets

The natural gas infrastructure wing of Detroit-based utility DTE Energy is acquiring a pipeline and gathering system within the Haynesville Shale formation of Louisiana.

The overall $2.65 billion deal includes 100 percent of the assets from Momentum Midstream and Indigo Natural Resources, the producer primarily supplying the system. The gathering system will also include a 150-mile pipeline under construction and to be service by the second half of 2020, according to reports.

“DTE’s non-utility operations continue to grow, perform well and fit nicely into our planned utility and non-utility mix,” said Jerry Norcia, president and CEO of DTE Energy. “This acquisition significantly enhances the strength and diversity of DTE Midstream, adding premium assets in one of the fastest growing and best positioned U.S. shale formations.”

The deal will enhance DTE Midstream’s access to Gulf Coast markets. Those include service to power, industrial and liquefied natural gas (LNG) export sectors in the region.

The parent DTE Energy has previously said it plans to invest up to $5 billion in the Midstream business from 2019 through 2023. The company also reaffirmed its long-term business mix of being 70-75 percent within the utility sector.

The Momentum Midstream transaction has been approved by DTE’s board of directors and is expected to close in this quarter. DTE is paying $2.25 billion in cash and will make a $400 million milestone payment upon completion of the gathering pipeline next year.

DTE Midstream adds the Haynesville Shale assets to natural gas storage, pipeline and gathering properties in the Midwest, Appalachia, Northeast and Ontario.