DTE Energy Company
) has struck a deal with two oil and gas energy biggies to expand
the Bluestone Pipeline in Susquehanna County in northeastern
Pennsylvania. Robust Marcellus reserves in Susquehanna County have
driven the need for added infrastructure.
The company through its unit, Gas Storage and Pipeline, has signed
an agreement with Marcellus Shale drillers
Southwestern Energy Co.
Cabot Oil & Gas Corp.
), to boost the Bluestone Pipeline capacity with minimum term
commitments ranging from 10 to 15 years.
Marcellus Shale, located across New York, Pennsylvania, West
Virginia, Ohio and Maryland, is rich in natural gas. As per the
U.S. Energy Information Administration report, published in Jan
2014, natural gas production is expected to increase by 40% to 14
Bcfd in 2014 from the year-ago production of approximately 10 Bcfd,
primarily due to a sharp rise in new well gas production per rig.
Now the 44.5 mile Bluestone Pipeline and Gathering system can ship
up to 600,000 Dth/day. With this expansion, the facilities can
transport up to 975,000 Dth/day. This marks a 60% boost in capacity
after the gathering system first came online in late 2012. DTE
Energy's Bluestone Gathering System delivers Marcellus Shale gas in
Pennsylvania and New York to Millennium Pipeline and Tennessee
The company's significant investment in its non-utility businesses
diversifies risk. The Gas Storage and Pipelines business is
evaluating new pipeline and storage investment opportunities and is
steadily working on its growth plan. The various projects in its
portfolio include the Bluestone pipeline, Vector Pipeline,
Millennium Pipeline, and Nexus Gas Transmission System.
DTE Energy is a holding company with subsidiaries engaged in
regulated and unregulated energy businesses. Its Gas Storage and
Pipelines division is engaged in natural gas pipelines, and
gathering and storage businesses, through DTE Pipeline and DTE Gas
Storage. This segment owns partnership interests in two interstate
transmission pipelines and controls two natural gas storage fields.
The pipeline and storage assets are primarily supported by
long-term, fixed-price revenue contracts.
DTE Energy currently has a Zacks Rank #2 (Buy). Another well-placed
stock in the energy space is
) with a Zacks Rank #1 (Strong Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
CABOT OIL & GAS (COG): Free Stock Analysis
CALPINE CORP (CPN): Free Stock Analysis Report
DTE ENERGY CO (DTE): Free Stock Analysis Report
SOUTHWESTRN ENE (SWN): Free Stock Analysis
To read this article on Zacks.com click here.