Energy commodity marketer enters pipeline business

By The Bakken Magazine Staff | November 12, 2014

Asset Risk Management offers producers marketing services for crude oil, natural gas and natural gas liquids in many of the major basins of the U.S. Through the formation of ARM Midstream, the company has been able to utilize its market knowledge of energy production to help producers with infrastructure needs specifically with oil and gas gathering and processing. Zavanna LLC, a Williston Basin pure-play operator, is now working with ARM Midstream.

The company recently unveiled plans to develop a crude oil gathering system spanning from McKenzie County, North Dakota, to various interconnections, downstream pipelines and rail takeaway facilities. Zavanna has signed a letter of intent to be the anchor shipper on the system.

“ARM’s decade of experience in helping oil and gas producers assess and manage commodity risks and issues will be invaluable as we jointly develop this region,” said William Coleman, Zavanna president.

ARM believes that the proposed pipeline can provide clients like Zavanna more flow insurance and a greater possible netback for its hydrocarbons produced in North Dakota.

“We are looking to provide our producers with better access to more firm markets,” said Paul Williams, vice president of business development for ARM Midstream. At press time, ARM Midstream had not yet announced dates for the start of an open season call to gauge shipper interest for producers looking to move oil.