According to the agreement with XTO, Summit will develop, own and operate a natural gas gathering and processing system.
It will construct a system with high and low pressure gathering and discharge pipelines, two compressor stations and a cryogenic processing plant with 60 MMcf/d of processing capacity.
The plant will have the ability to expand to a processing capacity of 600 MMcf/d, as required, to meet customer needs.
“Today’s announcement represents a significant step for Summit,” said Summit Midstream President and CEO Steve Newby.
“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.”
The first phase of project is expected to be operational by 1 June 2018.
For more information visit the Summit website.
If you have a project you would like featured in Pipelines International contact Managing Editor Nick Lovering at nlovering@gs-press.com.au