Summit Bows Out, Steel Reef Moves In
Calgary-based Steel Reef Infrastructure has expanded its U.S. midstream operations in the Williston Basin with the $40 million purchase of the Bison associated gas system operated by Houston-based Summit Midstream.
Reese Energy Consulting today is following the latest news from Steel Reef, which will add Summit’s 400 miles of gathering pipe and six compressor stations to its adjacent infrastructure in northwestern N.D. The company’s Lignite gas plant, 10 miles south of the North Portal border, processes and fractionates NGLs and includes a 232-mile gathering system connecting Lignite with Steel Reef’s Canadian gas gathering infrastructure in Saskatchewan. For Summit Midstream, the Bison sale marks its second divestiture of gathering and processing systems since June. In an all-cash deal with Dallas-based Matador Resources, Summit waved goodbye to its northern Delaware processing assets for a cool $75 million. Known as the Lane G&P System, that sold ticket included 45 miles of gathering pipe, three compressor stations, and a 60 MMCFD cryogenic plant serving producers in the Bone Spring and Wolfcamp. Residue gas is delivered to Summit’s Double E Pipeline, which opened for business last November.