Summit Midstream Partners Developing Natural Gas Plant in Delaware Basin

A Texas-based company announced this week plans to develop a natural gas plant that would service areas in the Delaware basin.

The $110-million project comes after a deal was made between Woodlands-based Summit Midstream Partners and XTO Energy, a subsidiary of Exxon Mobil.

The plant will be developed, owned, and operated by Summit, which expects to process the production from XTO as well as two other area producers.

Summit says the developments establishes the company’s presence in the Delaware Basin, one of the most active plays in the area. “This initial system is expected to provide SMLP with a platform for significant organic expansion across crude oil, natural gas and produced water gathering and/or processing services for years to come,” Steve Newby, President and Chief Executive Officer said in a press release.

According to the Texas company, the plant will have both high and low pressure gathering and discharge pipelines. Additionally, the processing plant will be capable of processing up to 60 million cubic feet per day, with the potential to expand to more than 600 million cubic feet per day to meet with customer demands.

The initial phase of project is expected to be operational by June 2018.

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