XTO Energy, Summit Midstream sign Utica shale gas agreement

12/16/2014

XTO Energy, Summit Midstream sign Utica shale gas agreement

DALLAS, Texas -- Summit Midstream Partners, LLC (Summit Investments) has reached an agreement with XTO Energy to develop and operate a new natural gas gathering system servicing XTO’s natural gas production from Belmont and Monroe counties in southeastern Ohio.

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

Summit Utica will gather, compress, and deliver natural gas produced by XTO into Regency Energy Partners LP’s 2.1 Bcfd high-pressure Utica Ohio River Trunkline project, which is currently under construction, and other downstream delivery points.

Summit Utica will consist of over 115 miles of gathering pipeline with four natural gas compressor stations and will have an initial design capacity of approximately 500 MMcfd.

The $400 million, multi-year development of the Summit Utica gathering system is currently underway and first flows to Regency’s Utica Ohio River trunkline are expected in the second half of 2015.
 
Steve Newby, President and CEO of Summit Investments commented, “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 currently own a 40% non-operated interest.”

“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,” Newby added.

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