Published: August 25, 2023 |

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DT Midstream Inc. (DTM) is ramping up investment in greenfield and other growth projects, including a buildout of infrastructure in Ohio’s Utica Shale, the company said in its second-quarter 2023 report released on Aug. 1.

The company reached a finalized development plan for an emerging associated gas resource development area in the Utica, where E&Ps such as EOG Resources have been developing what it calls its “Ohio Utica Combo” play.

DTM expects to invest approximately $100 million in the next year to develop the area with an initial gathering backbone buildout of more than 200 MMcf/d, according to the company’s second-quarter 2023 earnings presentation.

DTM’s plan is to develop a large-scale, multi-year natural gas gathering system to transport gas from wells in the Utica and integrate the resource with DTM’s downstream assets, including the Nexus and Vector pipelines and the Detroit-area’s Washington 10 Storage Complex, according to the company’s earnings call.

DT Midstream also provided updates on its carbon capture and sequestration (CCS) project in Louisiana, announcing it is on track for the project’s projected timeline with the filing of a Class V characterization well permit application.

So far in 2023, DTM has invested approximately $15 million into the Louisiana CCS project, which entails capture equipment, a new CO2 pipeline and storage development, and targets a proximal geological storage formation with a capacity of over 1 million tonnes per annum, according to the earnings presentation.

DTM plans to drill its Class V characterization well in fourth quarter 2023 and reach final investment decision in the first half of 2024. In fourth quarter 2024, DTM expects Class VI permit approval and by fourth quarter 2025, DTM expects full project in-service.

“We had another strong quarter, and the business continues to perform in-line with our full-year plan. We continue to make great progress advancing organic opportunities across our traditional and energy transition business platforms,” said David Slater, president and CEO.

The project’s economics are fully supported by the Inflation Reduction Act’s 45Q CO2 storage tax credit and is “a very economic project for investors,” David Slater, president and CEO, said in the company’s second quarter 2023 earnings call.

The project will also reduce DTM’s CO2 emissions, in line with the company’s goal of net zero emissions by 2050.

Slater also said DTM’s Haynesville LEAP pipeline expansion project is running ahead of schedule and that the company expects an early fourth quarter 2023 in-service date for its first phase.

DTM shifted approximately $100 million in capital originally allocated for 2024 into 2023 for the development of the Ohio Utica opportunity.

“Our second quarter financial results give us confidence in meeting our financial goals. We are in a strong position to achieve our goals in 2023 and beyond,” said Jeff Jewell, executive vice president and CFO.

Source: Hart Energy

DT Midstream is an owner, operator and developer of natural gas interstate and intrastate pipelines, storage and gathering systems, compression, treatment and surface facilities. The company transports clean natural gas for utilities, power plants, marketers, large industrial customers and energy producers across the Southern, Northeastern and Midwestern United States, and Canada. The Detroit-based company offers a comprehensive, wellhead-to-market array of services, including natural gas transportation, storage and gathering. DT Midstream is transitioning towards net zero greenhouse gas emissions by 2050, including a plan of achieving 30 percent of its carbon emissions reduction by 2030.

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