DT Midstream Inc. has agreed to acquire a portfolio of three Federal Energy Regulatory Commission-regulated natural gas transmission pipelines from ONEOK Inc. for $1.2 billion (about $900 million in debt and some $300 million in common equity).
The pipelines have a total capacity of more than 3.7 bcfd with about 1,300 miles across seven states in the Midwest market region.
Under terms of the agreement, DT Midstream will acquire 100% operating ownership in Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission, the company said in a release Nov 19.
Guardian Pipeline LLC is an approximately 260-mile interstate pipeline which is interconnected to DT Midstream’s Vector Pipeline, the Chicago Hub near Joliet, Ill., and serves local natural gas distribution and electric generation companies in Wisconsin.
Midwestern Gas Transmission is an approximately 400-mile bi-directional interstate pipeline which connects Appalachia supply to the Midwest market region between Tennessee and the Chicago Hub. The pipeline has an interconnection with Guardian Pipeline.
Viking Gas Transmission is an approximately 675-mile bidirectional system that connects key utility customers in Minnesota, Wisconsin, and North Dakota to Canadian supply at Emerson, Man.
Overall, the acquired portfolio has an approximately 90% demand-pull customer base with about 85% of revenues from investment-grade customers, the company said.
The transaction is expected to close in late 2024 or early 2025, subject to regulatory approvals and customary closing conditions.
