DTE Midstream has reached an agreement with WGL Midstream Inc. to acquire an additional 30 percent stake of Stonewall Gas Gathering for $275.3 million. The Detroit-based diversified energy company currently holds a 55 percent ownership interest in SGG. The acquisition would boost that interest to 85 percent.
“Expanding our ownership in SGG has strong strategic rationale,” DTE Midstream President David Slater said in a statement. “SGG complements our existing midstream business and provides a platform for continued value creation supported by a solid underlying resource.”
Completion of the acquisition is subject to various customary conditions and the execution of a definitive agreement following the satisfaction of certain third party rights and related notice and election periods. DTE Midstream has been operating SGG for nearly three years. The acquisition complements the existing DTE Midstream business and provides a platform for new growth opportunities. Stonewall Gas Gathering is an approximately 67-mile, 36-inch natural gas gathering system located in West Virginia.