XTO, Outrigger agree to Bakken midstream deal

By Luke Geiver | January 07, 2020

Outrigger Energy II announced today that it has entered into a long-term definitive gas gathering and processing agreement with XTO Energy Inc. to service XTO’s production in Williams County, ND. The gathering system will comprise a 70-mile, 20- and 24-inch diameter, rich gas pipeline originating in eastern Williams County and terminating at a new 250 MMcfd cryogenic gas processing plant located west of Williston, ND. Plans are also underway for a plant expansion of up to an additional 200 MMcfd, for total gas processing capacity of 450 MMcfd.

Outrigger will construct, own and operate the cryogenic processing plant and gathering system. The high efficiency plant features ethane recovery and rejection capabilities that will provide direct market access to the Northern Border Pipeline system for residue gas and the ONEOK NGL pipeline system for natural gas liquids. Future NGL fractionation facilities may be added to provide finished NGL products for local markets.

Dave Keanini, Outrigger’s CEO, stated, “We are grateful XTO has entrusted Outrigger to build a gathering system with substantial capacity and state-of-the-art facilities that will assist XTO with execution of its significant development plans in Williams County. Routing of the gathering line will provide other Williston Basin operators access to much needed gathering and cryogenic processing capacity. Moreover, this additional midstream capacity for gas production north of the Missouri River allows the State of North Dakota to make strides towards its goal of minimizing gas flaring in the Basin. Over the last six years, the Outrigger team has achieved an excellent track record of project execution, safe and reliable operations and customer service in the Delaware, Midland, Powder River and DJ Basins, and we couldn’t be more excited for the opportunity to do the same in North Dakota.”

In 2018, Outrigger entered the DJ Basin and built a 60 MMcfd system in the region to help DJ Basin producers deal with gas issues.

In 2017, Outrigger sold its midstream system and assets it had been developing for multiple years to Targa Resources. The deal was valued at roughly $1.5 billion.