Detroit-based DTE Energy Co. and its DTE Midstream have acquired a natural gas gathering system and gathering pipeline in Louisiana for $2.25 billion. The deal also included another $400 million at a 2020 milestone for the purchase of the system in the Haynesville Shale rock formation of the state.
The company acquired the assets from Momentum Midstream and Indigo Natural Resources which was the main natural gas producer supplying the system. It also included a 150-mile, under-construction pipeline and an existing system.
The purchase now gives DTE Midstream more access to the growing markets around the Gulf Coast, according to the company’s recent announcement.
The deal is expected to close in the fourth quarter, pending closing conditions and regulatory approvals, the release said. The additional $400 million would be paid when the under-construction pipeline is finished in the third or fourth quarter of 2020.