By Will Feuer
Gas pipeline operator DT Midstream Inc. said it has agreed to buy an additional 26.25% stake in Millennium Pipeline for about $552 million.
Through the all-cash deal, DT Midstream will buy National Grid PLC's full ownership interest in the pipeline, increasing DT Midstream's stake to 52.5%, the company said.
Millennium Pipeline, which has been in service since 2008, is a 263-mile interstate pipeline, positioned to deliver Northeast Marcellus and Utica gas to utility and power plant markets across New York State and New England.
The company said the deal aligns with DT Midstream's strategy of owning pure-play natural gas assets that connect supply basins with demand centers and key market regions. Chief Executive David Slater said revenue would be supported by take-or-pay contracts with high credit quality customers.
The deal is expected to close in the fourth quarter of 2022.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires