$1.6 billion federal loan to upgrade 800 miles of Michigan gas lines
(UI) — DTE Gas has secured a $1.6 billion federal loan to modernize natural gas infrastructure across Michigan, including upgrades to approximately 800 miles of distribution mains and service lines.
The loan, finalized by the U.S. Department of Energy's Office of Energy Dominance Financing, is expected to support system reliability improvements and upgrades to natural gas storage infrastructure serving customers throughout the state.
According to the DOE, a portion of the funding will be used to rebuild an existing compressor station that allows DTE to inject and store natural gas during periods of lower demand. The storage capability helps reduce fuel costs during peak-demand periods by allowing the utility to purchase and store gas when prices are lower.
Energy Secretary Chris Wright said the project is intended to lower energy costs while improving the reliability of Michigan's energy infrastructure.
"This loan to DTE Gas will lower energy costs, create jobs and increase reliability for customers across Michigan," Wright said.
DOE estimates the project will generate more than $700 million in savings for customers over time.
The investment is focused on modernizing DTE's natural gas delivery system and supporting long-term infrastructure reliability through pipeline replacement and compression upgrades.
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