DTE Midstream, a non-utility business of DTE Energy, has agreed to acquire a gathering system and gathering pipeline in the Haynesville shale formation of Louisiana for $2.25 billion in cash, plus a $400 million milestone payment upon completion of the gathering pipeline in second half 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 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.
“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,” said Jerr