Summit Midstream Holdings LLC, a subsidiary of Houston-based Summit Midstream Partners LP, signed and closed a sale of Bison Midstream LLC, its gas gathering system in northwestern North Dakota, to Steel Reef Infrastructure Corp., an integrated owner and operator of associated gas capture, gathering, and processing assets in North Dakota and Saskatchewan, for $40 million cash.
The Bison Midstream system, in Mountrail and Burke Counties, ND, gathers, compresses, and treats associated natural gas that exists in the crude oil stream produced from the Bakken and Three Forks shale formations in the Williston basin.
Gathering agreements for the system include long-term, fee-based, or percent-of-proceeds contracts, Summit Midstream said. Natural gas gathered on the Bison Midstream system is delivered to Aux Sable Midstream LLC's 80 MMcfd Palermo Conditioning Plant in Palermo, ND, and then delivered to downstream pipelines serving Aux Sable's 2.1 bcfd natural gas processing plant in Channahon, Ill.
Combined with the previous sale of the Lane gas gathering and processing system in Eddy County, NM, the sale of Bison Midstream advances Summit Midstream’s scale-building strategy, said Heath Deneke, president, chief executive officer, and chairman, in a release Sept. 19. In late June, Summit Midstream Permian LLC sold the Lane system in the Delaware basin to a subsidiary of Matador Resources Co. for $75 million cash.
Summit's focus in the Williston basin will be on growing its crude oil and produced water gathering systems primarily in Williams and Divide Counties, ND, Deneke said.