ONEOK has announced an agreement to sell its three wholly owned interstate natural gas pipeline systems to DT Midstream for $1.2bn.
The deal includes the sale of the Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission.
This move is part of ONEOK’s strategy to optimise its asset portfolio.
The 260-mile (418.4km) Guardian Pipeline interconnects with several pipelines near Joliet, Illinois, and serves Wisconsin. Midwestern Gas Transmission is a 400-mile bi-directional interstate pipeline connecting Tennessee to the Chicago Hub, while the 675-mile Viking Gas Transmission links Minnesota, Wisconsin and North Dakota to Canadian supply.
Together, these pipelines cover approximately 1,300 miles and have a total capacity of more than 3.7bcf/d.
ONEOK president and CEO Pierce H. Norton II stated: “This transaction will align and enhance our capital allocation priorities within our integrated operating footprint.
“DT Midstream is the ideal owner of these FERC [Federal Energy Regulatory Commission]-regulated interstate pipeline systems, with our employees sharing a similar culture of safety and reliability as they will continue to be excellent stewards of these assets providing essential natural gas transportation services.
“This strategic move to optimise ONEOK’s asset portfolio reinforces our standing as one of the largest diversified energy infrastructure companies delivering essential products and services.”
DT Midstream will gain 100% operating ownership of the pipelines, which are expected to support growth in the Midwest market region.
The acquisition aligns with the company’s strategy to own assets near key demand centres and market regions.
DT Midstream president and CEO David Slater said: “Expanding our scale through this bolt-on natural gas pipeline acquisition fully aligns with our pure play natural gas strategy. This transaction also increases the revenue contribution from our pipeline segment, supported by take-or-pay contracts with strong credit quality utility customers.”
The transaction is expected to close in the fourth quarter of 2024, subject to customary adjustments and pending regulatory approvals.
“ONEOK to sell three interstate natural gas pipelines to DT Midstream for $1.2bn” was originally created and published by Offshore Technology, a GlobalData owned brand.
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