Aux Sable & Summit Announce New Gas Purchase Agreement

Source: 9/16/2013, Location: North America

Aux Sable Midstream, LLC (“ASM”) and Summit Midstream Partners, LP (“SMLP”) are pleased to announce the execution of a new, long-term gas purchase agreement for liquids rich natural gas gathered on SMLP’s Bison gathering system. The rich natural gas will be conditioned at ASM’s Palermo Plant and then transported via ASM’s Prairie Rose Pipeline and the Alliance Pipeline for processing at Aux Sable Liquid Products LP’s (“ASLP”) Channahon, Illinois 2,100 million cubic feet per day (mmcfd) natural gas liquids extraction and fractionation facility.

Under the agreement, SMLP will dedicate gas gathered from their Bison gathering system in Burke and Mountrail counties to ASM up to 25 mmcfd with options to increase volumes as they develop. “We are very pleased to have reached this agreement with SMLP and look forward to growing the volumes that SMLP gathers for Bakken producers and Aux Sable moves to markets through world scale facilities. This agreement is consistent with our long-term strategy of providing Bakken producers with reliable and competitive market access for their rich natural gas that might otherwise be flared or less efficiently handled through field facilities” said W. J. (Bill) McAdam, President and Chief Executive Officer of Aux Sable.

Steve Newby, President and CEO of SMLP commented, “We are excited about expanding our relationship with Aux Sable, a premier midstream operator with large-scale natural gas processing assets. This agreement ensures that we have dedicated and scalable processing capacity available for our Bakken Shale customers over a long-term period. It also allows us to immediately offer our existing and future customers improved natural gas processing economics for their rich associated natural gas production.” North Dakota Governor Jack Dalrymple commented, “We must continue making progress in the gathering and processing of natural gas in western North Dakota. Aux Sable and Summit Midstream are playing an important role in our ongoing effort to reduce flaring and add value to our energy resources.”

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