Summit Midstream plans to spend $60 million to expand its Divide crude oil and water gathering system in Williams and Divide counties. The system includes 90 miles of crude oil gathering pipe already and an additional 145 miles of pipe is being added. The expansion will be able to handled 45,000 b/d of crude oil and 45,000 b/d of water.
Summit purchased Bison Midstream and associated gas gathering for $250 million earlier in June
“The execution of this new commercial agreement reflects the next step in our growth strategy to expand our presence in the Bakken Shale Play through organic development projects.”
The expansion is supported by a ten year agreement with a large independent operator that has dedicated 250,000 acres to the system. The system will be in service in the fourth quarter of 2013 or first quarter of 2014.
Read more at summitmidstream.com