DTE Midstream, a non-utility business of DTE Energy, has entered into an agreement to acquire a gathering system and gathering pipeline in the Haynesville Shale formation of Louisiana for a purchase price of $2.25 billion in cash, plus a $400 million milestone payment upon completion of the gathering pipeline in the second half of 2020. Under the terms of the agreement, DTE will acquire 100 percent of the assets from Momentum Midstream and Indigo Natural Resources, the primary gas producer supplying the system. Assets that are part of the acquisition include an existing gathering system and a 150-mile gathering pipeline under construction, which will be in service in the second half of 2020. The primary assets gather natural gas produced in the Haynesville Shale Basin and access multiple major downstream pipelines, including those serving the Gulf Coast.
At press time, the transaction was expected to close in the fourth quarter of 2019, subject to customary closing conditions and regulatory approvals.
For more information, visit www.dtemidstream.com or call (313) 235-1001.