The company is expanding its growth platform with the acquisition of assets in Louisiana’s highly economic Haynesville shale basin.
The assets include an existing gathering system and 241 km gathering pipeline under construction in the Haynesville shale formation of Louisiana, which will be operational in the second half of 2020.
DTE will pay US$2.25 billion in cash, with an additional US$400 million milestone payment required on completion of the gathering pipeline in the second half of 2020.
DTE President and CEO Jerry Norcia says DTE’s non-utility operations continue to grow and perform well.
“This acquisition significantly enhances the strength and diversity of DTE Midstream, adding premium assets in one of the fastest growing and best positioned US shale formations,” said Mr Norcia.
“This acquisition is highly accretive, has world-class resources, has excellent access to large markets, and is the early-to-mid-cycle development phase.
“It checks all of our boxes.”
The primary assets gather natural gas produced in the Haynesville shale basin and access multiple major downstream pipelines, including those serving the Gulf Coast.
DTE Midstream is a non-utility business of DTE Energy.
For more information visit the DTE Midstream website.
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