DALLAS -- Summit Midstream Partners and XTO Energy Inc., a subsidiary of ExxonMobil, announced Monday they will develop and operate a $400 million natural gas gathering system servicing XTO’s production from Belmont and Monroe counties in southeastern Ohio.

The gathering system will be owned and developed by Summit Midstream Utica LLC, a new indirect subsidiary of Summit Investments. XTO will be the anchor shipper and has dedicated 29,000 acres to Summit Utica under a long-term, fee-based gathering agreement, the companies said.

Summit Utica will gather, compress and deliver natural gas produced by XTO into Regency Energy Partners 2.1 billion cubic feet per day high-pressure Utica Ohio River trunkline project, which is under construction.

Summit Utica will consist of 115 miles of gathering pipeline with four compressor stations and will have the initial capacity of 500 million cubic feet per day. First flows of gas to the Regency Utica Ohio River pipeline are expected in the second half of 2015, the companies said.

“This development for XTO establishes Summit’s operating presence in the Utica Shale Play.  Additionally, this transaction increases Summit Investments’ development backlog to more than $2.0 billion and complements our existing Ohio gathering joint venture with MarkWest Utica EMG where we own a 40% non-operated interest,” said Steve Newby, president and CEO of Summit Investments, in a prepared statement.

“We are excited to deepen our relationship with XTO and to serve as their natural gas gathering partner in this strategically important and fast growing basin.  We also look forward to executing additional gathering agreements with other large acreage holders in the area over the next several months.”

SOURCE: Summit Midstream Partners LP.

Published by The Business Journal, Youngstown, Ohio.
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