Natural gas transmission company ONEOK has closed the sale of its three interstate natural gas pipeline systems to DT Midstream for $1.2bn in cash.
The three pipeline systems, Guardian Pipeline, Midwestern Gas Transmission and Viking Gas Transmission, together cover 1,300 square miles and have a total capacity of more than 3.7bcf/d [billion cubic feet per day]
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The 260-mile (418.4km) Guardian Pipeline connects with multiple pipelines near Joliet, Illinois, serving Wisconsin.
The 400-mile Midwestern Gas Transmission is a bi-directional interstate pipeline linking Tennessee to the Chicago Hub, while the 675-mile Viking Gas Transmission connects Minnesota, Wisconsin and North Dakota to Canadian gas supplies.
The agreement between the companies on the sale of the gas pipeline systems was signed in November 2024.
DT Midstream gains 100% operating ownership of the pipelines, which are strategically positioned to support growth in the Midwest market region.
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By GlobalDataThis acquisition is in line with DT Midstream’s strategy to own assets close to key demand centres and market regions.
The net proceeds from the sale are expected to bolster ONEOK’s financial flexibility, aiding in achieving its leverage target of 3.5 times by 2026.
“ONEOK president and CEO Pierce H Norton II stated: “The closing of this transaction represents another milestone in the strategic optimisation of our integrated asset portfolio and advances our capital allocation priorities.
“As the new owner of these pipelines, DT Midstream brings a shared commitment to safety, reliability and excellence that will serve all stakeholders well.
“We appreciate the dedication of our employees transitioning to DT Midstream, where they will play a vital role in establishing the company’s new Tulsa office and continue to be instrumental in the success of these essential natural gas systems moving forward.”
ONEOK is a midstream operator that provides a suite of services including gathering, processing, fractionation, transportation and storage.
Operating a pipeline network of more than 50,000 miles, ONEOK plays a role in transporting natural gas, natural gas liquids (NGLs), refined products and crude oil.
ONEOK signed an agreement to acquire all remaining publicly held common units of EnLink Midstream through a tax-free transaction valued at $4.3bn in November 2024.
