DT Midstream To Buy Three Oneok Pipelines for $1.2 Billion

Wedoany.com Report-Nov 20,  DT Midstream Inc. has reached an agreement to buy three natural gas transmission pipelines from Oneok Inc. for $1.2 billion.

The pipelines have a total capacity of more than 3.7 billion cubic feet per day, stretching 1,300 miles (2,090 kilometers) across seven states in the Midwest, DT said in a statement Tuesday. DT will acquire 100% operating ownership in Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission.

The oil and gas sector has been a major driver of merger-and-acquisition activity in the US this year. While this largely has been due to a wave of consolidation among oil explorers seeking to secure future drilling sites in the Permian Basin, gas pipeline operators also have been striking deals amid the need to transport plentiful supplies and grow in a challenging regulatory environment for expansion. 

Building oil and gas pipelines in the US is difficult due to legal challenges from environmental groups, political opposition in Democratic states and a glacial federal permitting process. Dealmaking is a way for companies to expand without having to build new infrastructure.

In August, Oneok agreed to buy Global Infrastructure Partners’ entire interest in EnLink Midstream LLC and also GIP’s equity interests in Medallion Midstream, the largest closely held crude gathering and transportation system in the Permian Basin. The deals were valued at a combined $5.9 billion.