Comprehensive Energy Data Intelligence
Information About Energy Companies, Their Assets, Market Deals, Industry Documents and More...
Bison Gas Gathering System Sold: $40M Cash Paid By Summit Midstream to Steel Reef10/25/2022
Steel Reef acquires Summit Midstream’s Bison Gas gathering system in North Dakota for $40 million in cash as part of Houston-based Summit’s plans to streamline its portfolio.
According to a release on September 19, with the sale of Bison Midstream, Summit’s focus in the Williston Basin will be on increasing its crude oil and produced water gathering systems mainly situated in Williams and Divide Counties, North Dakota.
The Bison agreement follows the sale of Summit’s Lane gathering and processing system in the Permian Basin to Matador Resources Co. in June for $75 million. The merger of the divestitures creates additional financial flexibility to reinvest in more strategic scale-building opportunities across Summit’s footprint.
Summit Midstream Partners LP concentrates on developing, possessing, and managing midstream energy infrastructure assets that are strategically situated in the core producing areas of unconventional resource basins, mainly shale formations, in the continental U.S. The company’s portfolio is broken down into four sections: the Barnett, Northeast, Permian, and Rockies.
After the sale of the company’s Bison gas gathering system, Summit will still possess the Polar and Divide system in the Williston Basin, which has more than 295 miles of crude oil and produced water pipelines, spanning throughout the central and western parts of Williams and Divide counties in North Dakota, from the Missouri River to the Canadian border.
Summit Midstream is interested in the status of customer development activity in central Williams County and pro forma for the transaction and anticipates over 50 new wells behind our liquids system in 2023.
The Bison gas gathering system, established in Mountrail and Burke counties in northwestern North Dakota, was purchased by Steel Reef Infrastructure Corp., an integrated owner, and operator of associated gas capture, gathering, and processing assets in North Dakota and Saskatchewan.
Bison gathers, compresses, and treats associated natural gas in the crude oil stream produced from the Bakken and Three Forks shale formations. According to the Summit release, a large U.S. independent crude oil and natural gas company and Chord Energy Corp. are Bison Midstream’s key customers.
Natural gas gathered on the Bison system is conveyed to Aux Sable Midstream LLC’s Palermo Conditioning Plant in Palermo, North Dakota. Then the gas is transferred to downstream pipelines serving Aux Sable's 2.1 Bcf/d natural gas processing plant in Channahon, Illinois.
Pro forma for the Bison transaction, Summit will have about $90 million drawn on its $400 million ABL credit facility, resulting in over $300 million of available liquidity, according to Deneke. The company continues to anticipate to trend toward the high end of our 2022 Adjusted EBITDA guidance range of $205 million to $220 million.
Locke Lord LLP served as the legal adviser to Summit and Bracewell LLP was the legal adviser to Steel Reef for the Bison transaction.
To get deeper into the deals in the Willston basin or about other midstream M&As, please, contact our Houston sales office or SCHEDULE A DEMO to learn how Rextag can help you leverage energy data for your business. Tel. +1 713-203-3128 Email: firstname.lastname@example.org
The Deal between TC Energy and Mexican Utility is Concluded to Build $4.5 Billion Gas Pipeline
TC Energy Corp. had reached a deal with a Mexican state utility to build a $4.5 billion natural gas pipeline, according to a company release on Aug. 4. The natural gas to Mexico's central and southeast regions will be furnished by the 1.3 bcfd offshore Southeast Gateway Pipeline, the Canadian pipeline operator said. Due to the most serious trade spat with #Mexico over the United States-Mexico-Canada Agreement, Canada and the United States made the deal with Comisión Federalde Electricidad (CFE). TC Energy and CFE in conjunction with the alliance also took the final investment decision (FID) on the 715-km Southeast Gateway. The pipeline will serve southeast Mexico, starting onshore in Tuxpan, Veracruz, then proceeding offshore, making landfall at Coatzacoalcos, Veracruz, and Dos Bocas, Tabasco.
Baker Hughes To Help Driftwood Pipeline Decarbonize Its Lines 200 and 300 Projects
According to a press announcement on June 29, Baker Hughes got a contract to supply electric-powered Integrated Compressor Line (ICL) decarbonization technology and turbomachinery equipment for an upcoming natural gas transmission project by a subsidiary of Tellurian Inc. – Driftwood Pipeline LLC. Driftwood Pipeline decided that the projects of Lines 200 and 300 would be situated in Beauregard and Calcasieu Parishes in southwest Louisiana and it will be the first time when Baker Hughes installs its ICL technology for pipeline compression in North America. Joey Mahmoud, president of Tellurian Pipelines, says the company expects that the project will give upwards of 5.5 Bcf of natural gas every day, with virtually no emissions. As a part of the agreement, Tellurian makes the initial $240 million pipeline investment as part of the broader Driftwood Pipeline system, which will keep enhanced supply reliability to meet the area’s projected industrial enlargement in a purer, more sustainable way. Baker Hughes has installed over 50 ICL units across the different pipeline and offshore applications, mainly in Europe. The compressors exert a reduced environmental footprint because their hermetically sealed casing prevents emissions from obviating. It is important to mention, that they require minimal downtime as magnetic bearings are resulting in more efficient operations and low maintenance.
Enbridge acquired Tres Palacios natural gas storage facility in Texas for $335 million, adding approximately 35 Bcf of natural gas storage to their portfolio. The facility uses salt caverns for storage and has a gas header pipeline system that spans 62 miles and links to 11 major gas pipelines. Crestwood Equity Partners LP intends to divest its interests in Tres Palacios by the second quarter.
The U.S. natural gas pipeline network is a complex system of pipelines that transport natural gas from production areas to consumers across the country. The pipeline network consists of three main types of pipelines: gathering pipelines, transmission pipelines, and distribution pipelines. Gathering pipelines are small-diameter pipelines that transport natural gas from production wells to processing facilities or larger transmission pipelines. Transmission pipelines are large-diameter pipelines that transport natural gas over long distances, sometimes across multiple states. Distribution pipelines operate at low pressure and are located in or near urban areas. They are often referred to as "utility pipelines" because they are typically owned and operated by local gas utility companies.
Diamondback Energy, an independent oil and gas company, has successfully completed the acquisition of Lario Permian, marking the closure of two major deals in the fourth quarter of 2022. The company purchased two private operators in the Midland Basin for approximately $3.3 billion.