DTE Energy has acquired midstream natural gas assets in Pennsylvania and West Virginia from M3 Midstream and Vega Energy Partners for $1.3bn.
As part of the deal signed earlier, DTE has acquired 100% interest in the Appalachia gathering system (AGS) located in Pennsylvania and West Virginia as well as 40% stake in Stonewall gas gathering (SGG) in West Virginia from M3 Midstream.
The firm also acquired 15% stake in the SGG from Vega Energy Partners.
DTE Energy chairman and CEO Gerry Anderson said: "This completed acquisition is a great addition to our portfolio and supports both our strategy in this segment and our drive to continue to grow and earn strong returns for shareholders.”
DTE said that the acquired assets have significant expansion potential and are in a highly productive area of the Southwest Marcellus/Utica region.
Anderson added: “Energy companies in the Midwest, including DTE, are in the process of transitioning a good portion of their electrical generation capacity from coal to natural gas.”
The acquisition is expected to help the company move toward a lower-carbon future.
DTE said that the assets will provide improved economics supported by long term contracts and high quality reserves while complementing existing gas midstream business.
The assets are also expected to provide strong economics supported by long-term contracts and high-quality reserves, the company noted.
DTE Energy president and COO Jerry Norcia earlier said: "These two systems are complementary to our current asset portfolio and will provide synergies over time."