DTE Midstream executed a purchase agreement with AltaGas Ltd. (WGL) for the acquisition of 30 percent of the Stonewall Gas Gathering (SGG) system increasing its ownership from 55 to 85 percent with Antero Resources holding the remaining 15 percent.
DTE Midstream currently operates SGG and Appalachia Gathering System (AGS) as one integrated high-pressure header system, referred to as the “Link” system. Link connects to two interstate pipelines, Texas Eastern Transmission (Enbridge) to the north and Columbia Pipeline (TC Pipeline) to the south, as well as various in-field gathering systems. Link supports many of the largest producers in one of the most prolific regions of the Marcellus and the Utica shale formations. The SGG system can transport up to 1.4 billion cubic feet per day of gas to end customers in the Midwest, Northeast and south in direction of the Gulf Coast.
SGG is a 67-mile, 36-inch diameter, high pressure natural gas main-line gathering system located in West Virginia. DTE Midstream originally acquired a 55% stake in the SGG system in October 2016, less than a year after it went into service.
“Stonewall Gas Gathering also provides a strategic connection to NEXUS, as well as the state of Michigan and its customers,” said David Slater, president DTE Midstream. “Demand for natural gas in the Great Lakes region is expected to increase significantly over the next 15 years, and this acquisition sets us up well to be a premiere provider of low-cost natural gas to the region.”