Summit Midstream Partners LP has executed an agreement with XTO Energy Inc. to develop, own and operate a new associated natural gas gathering and processing system servicing acreage located in the northern Delaware Basin in Eddy and Lea counties, NM.
Summit will initially construct a gathering and processing system with high and low pressure gathering and discharge pipelines, two compressor stations and a cryogenic processing plant with 60 MMcf/d of processing capacity. Summit’s processing complex will have the ability to be expanded to over 600 MMcf/d of processing capacity to meet customer needs as warranted. The company expects to process production from XTO and other nearby producers.
The initial phase of the project is expected to be operational on or before June 1, 2018 at a total investment cost of $110 million.