DT Midstream has finalized a strategic acquisition involving three natural gas transmission pipelines from ONEOK for a total of $1.2 billion. These key infrastructures, regulated by the Federal Energy Regulatory Commission (FERC), span 1,300 miles and serve an essential network covering seven states in the American Midwest.
The agreement, effective December 31, 2024, marks a significant step in the company’s strategy to enhance its position in the natural gas sector. The pipelines, operating under the names Guardian Pipeline, Midwestern Gas Transmission, and Viking Gas Transmission, have a total transportation capacity exceeding 3.7 billion cubic feet per day (Bcf/d).
An acquisition supported by solid contracts
The acquired assets are backed by take-or-pay contracts, ensuring stable and predictable revenues. These contracts, established with high-quality clients, including utilities and industrial players, underscore the robustness of DT Midstream’s adopted business model.
The transaction also expands the company’s geographic footprint while optimizing its portfolio of critical infrastructures in a growing market.
Implications for the gas market
This operation reflects an increased investment dynamic in natural gas infrastructures, particularly in the Midwest, a strategic region for the energy supply of the United States. The acquired infrastructures enhance transportation capacities to meet growing demand while providing increased connectivity to national networks.
By leveraging this acquisition, DT Midstream aims not only to increase its transport capacity but also to further diversify its revenues in an increasingly competitive energy environment.
