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DTE Energy to Expand Bluestone Gathering System

DTE Energy Co. said Thursday its natural gas pipeline subsidiary has secured long-term gathering commitments with Southwestern Energy Co.and Cabot Oil & Gas Corp., allowing it to significantly expand the capacity of its Bluestone gathering system.

DTE Pipeline Co.'s Bluestone gathering system measures 44.5 miles and connects the Tennessee Gas Pipeline in Susquehanna County, PA, with the Millennium Pipeline in Broome County, NY, and entered service in November 2012 (see Shale Daily, Dec. 6, 2012). The system can currently transport up to 600,000 Dth/d.

Detroit-based DTE said incremental capacity on the Bluestone system is supported by long-term agreements, with minimum term commitments ranging from 10 to 15 years. Once in service, the expansion facilities will increase Bluestone's capacity to 975,000 Dth/d.

"The stronger than expected performance of Marcellus reserves in Susquehanna County continues to drive the need for additional infrastructure," said Richard Redmond, DTE executive vice president for gathering and processing.

DTE owns a 40% stake in the Vector Pipeline, a 1.3 Bcf/d pipeline that connects Chicago and Michigan with the Dawn Hub in western Ontario. DTE also owns a 26.25% stake in the Millennium Pipeline, which runs 186 miles from Corning to Ramapo, NY, and has an initial capacity of 525 MMcf/d (see Daily GPI, Oct. 29, 2009; Dec. 23, 2008).

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