US energy group DTE Energy has completed the US$1.3bn acquisition of midstream gas assets in Pennsylvania and West Virginia (United States) from m3 Midstream and Vega Energy Partners, as announced in September 2016.
DTE acquired 100% of Appalachia Gathering System (AGS), located in Pennsylvania and West Virginia, and 40% of Stonewall Gas Gathering (SGG), in West Virginia, from m3 Midstream. In addition, DTE purchased 15% of SGG from Vega Energy Partners. These assets will be integrated into the DTE's non-utility Gas Storage and Pipeline business which currently includes a network of natural gas gathering, transmission and storage facilities serving the Midwest, Ontario and Northeast markets.
Demand for natural gas in the Great Lakes region is expected to increase significantly, driven by coal to gas conversions for electricity generation and economic growth. The low-cost natural gas supply from the Marcellus/Utica region is expected to serve this growth and displace higher cost alternatives.