Enable Midstream Partners LP’s crude services subsidiary has entered into a long-term agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corp. (NYSE:XOM), to gather XTO’s crude oil production through a new system that will be constructed in North Dakota’s Bakken shale. The systems are expected to begin initial operations during the second quarter of 2015.
The agreement is entered into pursuant to an open season announced by Enable Midstream on Feb. 3. 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.
This is the second crude gathering system that 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.