Summit Midstream signs agreement with XTO Energy
Published by Callum O'Reilly,
Senior Editor
Hydrocarbon Engineering,
Summit Midstream Partners LP (SMLP) has signed an agreement with XTO Energy Inc. to develop, own and operate a new associated natural gas gathering and processing system in the northern Delaware Basin in Eddy and Lea counties in New Mexico, US.
The company will construct a gathering and processing system with high and low pressure gathering and discharge pipelines, two compressor stations and a cryogenic processing plant that has a processing capacity of 60 million ft3/d.
The capacity of the processing complex can be expanded to over 600 million ft3/d. Summit expects to process production from XTO and other nearby producers.
The initial phase of the project is expected to be operational on or before 1 June 2018 at a total investment cost of approximately US$110 million.
Steve Newby, President and Chief Executive Officer of Summit, said: "Today's announcement represents a significant step for Summit. This greenfield development project establishes Summit as a key midstream service provider in the Delaware Basin, one of the most active, economic and exciting plays in North America. This initial system is expected to provide SMLP with a platform for significant organic expansion across crude oil, natural gas and produced water gathering and/or processing services for years to come. We look forward to executing additional commercial agreements with other producers in the area."
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/10072017/summit-midstream-signs-agreement-with-xto-energy/
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