DTE Midstream to acquire Haynesville assets for $2.25 billion

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

DTE Midstream will acquire 100% of the assets from Momentum Midstream LLC and Indigo Natural Resources LLC, the primary gas producer supplying the system. Acquired assets include an existing gathering system and a 150-mile gathering pipeline, still under construction, that is expected to be in service in the second half of 2020. The primary assets gather natural gas produced in the Haynesville and access multiple downstream pipelines, including those serving the Gulf Coast.

The acquired assets are fully contracted with a remaining tenor of 13½ years for the existing gathering system and a 10-year contract for the large-diameter gathering pipeline currently under construction.

The acquisition is in line with DTE Energy’s plan to invest $4-5 billion in DTE Midstream from 2019-23, the company said.

The transaction is expected to close in this year’s fourth quarter.