Summit Midstream Expanding Bakken System - $300 Million

Summit Midstream Partners announced in June of 2014 that it will spend $300 million on four new development projects involving oil, water and natural gas gathering in the Bakken Shale play. The new projects will further expand the companies footprint in Williams and Divide counties. In June of 2013, Summit announced plans to spend $60 million on development projects in North Dakota.

Read more: Summit Midstream Expanding Bakken System in Williams and Divide Counties

One of the Summit's new projects is geared towards providing customers with additional crude oil interconnects. Meadowlark, a wholly owned operating subsidiary of Summit, will construct a new crude oil truck unloading station. With this project, Meadowlark will provide its customers with a new interconnect for up to 50,000 b/d of crude oil deliverability, providing access to new downstream markets on both the East and West Coasts.

We expect our new organic development projects will further enhance Summit’s position as a leading, independent midstream provider in the Bakken Shale.
— CEO Steve Newby.

Another of the company's recently announced projects is a new 240 mile pipeline, which officials say will reduce flaring in North Dakota, as the pipeline gathers natural gas in a remote area currently lacking in infrastructure. The pipeline will be constructed by Tioga Midstream, a subsidiary of Summit Midstream. When it is completed, it is expected to have a total system capacity of 20,000 b/d of crude oil, 25,000 b/d of water, and 14 million cf/d of associated natural gas. The project is supported by a 10 year agreement with an acreage dedication of 114,000 acres.

Read more at summitmidstream.com

Dakota Plains Facility Expansion Expected Online in December - Video

Dakota Plains expects to commission an expansion of its Pioneer Terminal in New Town, ND, on December 18th.

Read more:Dakota Plains Pioneer Project Under Construction

When completed, throughput capacity at the rail terminal will increase from 30,000 b/d to 80,000 b/d. The facility will also have 180,000 barrels of storage.

The expansion couldn't come at a better time. The spread between WTI and Brent oil prices is at the highest point since March. A larger spread makes moving oil by rail more attractive.

With price spreads and throughput volumes at their current high levels, and with our newly expanded Pioneer Terminal soon allowing higher throughput volumes, we believe we will be well-positioned for profitability as we move forward.
— Mr. Craig McKenzie, CEO