Enable Midstream Partners, LP has entered into a long-term agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corporation, to gather XTO’s crude oil production through a new system that will be constructed in North Dakota’s liquids-rich Bakken shale.
The agreement is entered into pursuant to an open season announced by Enable Midstream on February 3, 2014. Under the terms of this new agreement, which is secured through acreage dedications, Enable Midstream will provide services to XTO through a crude oil gathering system to be constructed in Williams and Mountrail counties of North Dakota. The new system will have a capacity of up to 30,000 barrels per day of crude gathering and include 85 miles of crude gathering lines. A second agreement includes the construction of a water gathering and transport system for produced water. The water system will include 75 miles of gathering lines.
The systems are expected to commence initial operations during the second quarter of 2015.
“These new contracts allow us to expand our asset infrastructure and to increase our crude oil and water service offerings in the Williston Basin,” said Lynn Bourdon, Enable Midstream’s President and CEO. "Having a successful customer like XTO sign up as an anchor tenant on a second gathering system in this region demonstrates their confidence in our abilities as a service provider.”
This is the second crude gathering system Enable Midstream has committed to build in the Bakken area. In April 2013, the company announced its first long-term agreement with XTO to construct a crude oil gathering system in Dunn and McKenzie counties of North Dakota. That gathering system began initial operations in November 2013 and, upon final completion, is expected to have a capacity of up to 19,500 barrels per day.
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