Summit Midstream Partners has entered a purchase and sale agreement with Encana Oil & Gas to acquire natural gas midstream assets in the Piceance Basin, Colorado, US, for $590m.
Under the terms of the agreement, Summit Midstream will acquire 260 miles of pipeline and 90,000hp of compression facilities, which serve production from Mamm Creek, Orchard, and South Parachute in the area around Rifle.
The assets currently transport 500 million cubic feet per day of natural gas under long-term contracts with multiple producers.
Summit Midstream will also construct the midstream infrastructure necessary to support Encana’s Niobrara development.
Summit Midstream Partners president and CEO Steve Newby said that the firm will also add a team of veteran midstream operators.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
