Summit Utica to develop NG gathering system for XTO Energy

Summit Midstream Partners LLC

Summit Midstream Partners LLC, a privately held company that owns and controls the general partner of Summit Midstream Partners LP (NYSE: SMLP) and also owns a 49.5% limited partner interest in SMLP, has reached an agreement with XTO Energy Inc. to develop and operate a new natural gas gathering system servicing XTO's natural gas production from Belmont and Monroe counties in southeastern Ohio. 

The gathering system will be owned and developed by a new indirect subsidiary of Summit Investments, Summit Midstream Utica LLC. XTO will serve as the anchor shipper and has dedicated approximately 29,000 acres to Summit Utica under a long-term, fee-based gathering agreement.

Summit Utica will gather, compress, and deliver natural gas produced by XTO into Regency Energy Partners LP's 2.1 billion cubic feet per day high-pressure Utica Ohio River Trunkline project (Regency Utica Ohio River), which is under construction, and other downstream delivery points. 

Summit Utica will consist of over 115 miles of gathering pipeline with four natural gas compressor stations and will have an initial design capacity of approximately 500 million cubic feet per day. The $400 million, multi-year development of the Summit Utica gathering system is under way, and first flows to Regency Utica Ohio River are expected in the second half of 2015.  

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