Summit announces $300 million plan for Bakken infrastructure

By Luke Geiver | June 11, 2014

Summit Midstream Partners LLC has an affinity for the month of June. This month, the midstream energy infrastructure development company announced four new oil, water or natural gas projects in North Dakota that will require $300 million of investment. In June 2013, Summit announced infrastructure projects in North Dakota that received $60 million of investment. The recently unveiled projects will expand Summit’s footprint in the North Dakota Counties of Williams and Divide.

Summits four new developments or project updates include: Tioga Midstream, Divide System, Stampede Rail Connection and the Kodiak Oil & Gas Corp. Gathering Expansion.

Tioga Midstream:

The new development will service a Bakken producer and help collect crude oil, water and associated natural gas in Williams County. The project will require 240-miles of new pipeline. In total, the gathering system will offer 20,000 barrels per day capacity for crude oil, 25,000 bpd for water and 14 million cubic feet per day of capacity for moving associated gas. The project was formed with a 10-year, fee-based gathering agreement including an acreage dedication of 114,000 acres. The gathering system will help connect remote wells with the operator’s current natural gas processing plant.

Divide System Commercial:

Through Meadowlark Midstream Co. LLC, a wholly owned subsidiary of Summit, Samson Resources Co. will gain long-term crude oil transportation. Meadowlark will continue its expansion of crude oil gathering lines in Divide County. The expanded infrastructure will be connected to Samson wells. The system should be running by the third quarter of this year.

Stampede Rail Connection:

In addition to its build out of crude oil gathering lines in Divide County, Meadowlark is also working to construct an oil transload facility for Global Partners LP. The crude oil unloading facility will also include 55,000 barrels of crude storage capacity and a 47-mile pipeline to connect Global’s 270,000 crude storage facility at Basin Transload’s Stampede rail terminal in Burke County, N.D. The rail portion of the project will help connect other customers to both the East and West coasts, according to Meadowlark.

Kodiak Oil & Gas Corp:

In Williams County, Meadowlark has agreed to expand its current gather system known as the Polar System. The expansion will connect more than 60 possible well pad sites for Kodiak over the next several years. The expansions will more than double the number of pad sites currently linked in to the Polar System.

Steve Newby, president and CEO of Summit, said he is pleased with the recent announcements. He is particularly excited about the Tioga Midstream development, he said in a statement regarding the announcements.