DTE Midstream acquires 30 percent of Stonewall Gas Gathering for more than $275M
A letter agreement between DTE Midstream and WGL Midstream, Inc. has initiated the acquisition of 30 percent of Stonewall Gas Gathering (SGG) for the former, under a $275.3 million deal.
As DTE Midstream already owns 55 percent of Stonewall Gas Gathering, the agreement will bring their total stake in the system to 85 percent. That gives them increased control over a 67-mile natural gas gathering system in West Virginia and bolsters their operations in the process.
“Expanding our ownership in SGG has strong strategic rationale. SGG complements our existing midstream business and provides a platform for continued value creation supported by a solid underlying resource,” David Slater, president of DTE Midstream, said.
DTE Midstream has already been utilizing SGG for almost three years, but the expansion of interest therein will require specific actions before completion. Customary conditions must be met and a definitive agreement established, supposing that certain notice and election periods are met.
