Aux Sable Midstream and Summit Midstream Partners, LP Announce New Gas
CHANNAHON, IL and DALLAS, Sept. 16, 2013 /CNW/ - Aux Sable Midstream, LLC
("ASM") and Summit Midstream Partners, LP ("SMLP") (NYSE: 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."
About Aux Sable
For over twelve years, Aux Sable has delivered outstanding safety,
environmental and operating results. The company now has operations in
several locations in the United States and Canada.
Aux Sable USA
Aux Sable Liquid Products owns and operates one of the largest NGL extraction
and fractionation plants in North America. The facility is located in
Channahon, Illinois about 50 miles southwest of Chicago near the eastern
terminus of the Alliance pipeline. The facility is capable of processing 2,100
mmcfd of gas and can produce about 102,000 barrels per day of specification
NGL products. All of the Alliance gas is processed at the Channahon NGL
Facility where Aux Sable has shipper contracts to extract the NGLs.
Aux Sable Midstream owns and operates the Palermo Conditioning Plant and the
Prairie Rose Pipeline. The Prairie Rose Pipeline connects the Palermo
Conditioning Plant to the Alliance Pipeline, which delivers high energy dense
phase gas to Aux Sable'sChannahon, Illinois Plant for NGL extraction and
processing. ASM is pursuing other NGL processing and infrastructure
midstream initiatives, primarily driven by the shale oil and shale gas
developments in the Midwest and northeast United States.
Aux Sable Liquid Products and Aux Sable Midstream are both owned by Enbridge
(42.7% equity interest), Veresen (42.7% equity interest) and Williams Partners
(14.6% equity interest).
Aux Sable Canada
Aux Sable Canada is an active midstream gas processing company in Western
Canada, primarily along the Alliance Pipeline corridor. Utilizing
transportation on the Alliance dense phase gas pipeline, ASC provides value
added solutions for producers to effectively develop and produce NGL rich gas
reserves. Since inception, the company has successfully attracted rich gas to
Alliance through inducements and new rich gas connections. ASC's strategy also
includes building, owning and operating offgas processing facilities for the
heavy oil upgrading and refining industry in Alberta.
Aux Sable Canada is owned by Enbridge (50% equity interest) and Veresen (50%
equity interest). Enbridge and Veresen each own a 50% interest in the Alliance
About Summit Midstream Partners, LP
SMLP is a growth-oriented limited partnership focused on owning and operating
midstream energy infrastructure assets that are strategically located in the
core producing areas of unconventional resource basins, primarily shale
formations, in North America. SMLP currently provides primarily fee-based
natural gas gathering and compression services in four unconventional resource
basins: (i) the Piceance Basin, which includes the Mesaverde formation as well
as the Mancos and Niobrara shale formations in western Colorado; (ii) the Fort
Worth Basin, which includes the Barnett Shale formation in north-central
Texas; (iii) the Williston Basin, which includes the Bakken and Three Forks
shale formations in northwestern North Dakota; and (iv) the Appalachian Basin,
which includes the Marcellus Shale formation in northern West Virginia. SMLP
owns and operates 757 miles of pipeline and 181,200 horsepower of
compression. SMLP is headquartered in Dallas, TX with offices in Houston,
TX, Denver, CO and Atlanta, GA.
For more information on Aux Sable, visit www.auxsable.com. For more
information on Summit Midstream Partners, LP, visit www.summitmidstream.com.
SOURCE Aux Sable Canada LP
Aux Sable US Scott A. Seibert Government &
Public Affairs Manager (815) 941-6250 Email:firstname.lastname@example.org
Summit Midstream Partners, LP Marc Stratton
Vice President & Treasurer (214) 242-1966 Email:email@example.com
Image with caption: "Aux Sable Midstream and Summit Midstream Partners, LP
Announce New Gas Purchase Agreement (CNW Group/Aux Sable Canada LP)". Image
To view this news release in HTML formatting, please use the following URL:
CO: Aux Sable Canada LP
Press spacebar to pause and continue. Press esc to stop.