Summit to buy Encana midstream gas assets

Summit Midstream Partners LLC has agreed to buy natural gas transportation facilities in the Piceance basin of the US from Encana Corp. for $590 million.

Summit will acquire 260 miles of pipeline and 90,000 hp of compression facilities transporting about 500 MMcfd of gas from Mamm Creek, Orchard, and South Parachute fields around Rifle, Colo. Summit also has committed to building midstream facilities supporting Encana’s work in the Niobrara shale oil play in Colorado.

Encana is directing $1 billion of its 2011 budget toward increasing future liquids recovery in North America (OGJ Online, June 2, 2011).

Earlier this year, Encana sold a gathering system and processing plant near Fort Lupton, Colo., and more recently agreed to sell its interest in the Cabin Gas plant in the Horn River basin of northeast British Columbia (OGJ Online, Oct. 7, 2011).