Summit Midstream Partners Pipelines Commence Operations in Bakken Shale Play

By Mike Kezdi February 10, 2016 View Profile

Summit Midstream Partners LP’s Stampede Lateral crude oil transmission pipeline in North Dakota commenced operations and the company is currently in the final stages of completing the nearby Little Muddy crude oil transmission pipeline, which includes an interconnect with Enbridge’s North Dakota Pipeline System.

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These crude oil development projects provide customers on the Polar & Divide gathering system with two new delivery points and enhanced optionality to access additional downstream markets via rail and pipeline infrastructure. Prior to the commissioning these projects, crude oil on the Polar & Divide system was delivered exclusively to the Colt Hub rail terminal in Epping, North Dakota.

“The start-up of the Stampede Lateral and Little Muddy Interconnect significantly diversifies our downstream takeaway options for our customers on our crude oil gathering systems in the Bakken,” said Steve Newby, Summit Midstream Partners president and CEO. “We are excited to enhance the interconnectivity of our crude gathering system and to provide our customers with to access multiple downstream markets.”

The Stampede Lateral connects Summit Midstream’s Polar & Divide crude oil gathering system with Global Partners LP’s Basin Transload rail terminal located near Columbus, North Dakota. The Stampede Lateral provides Global Partners and other producers in the region with up to 60,000 bbls/d of crude oil throughput capacity.

The 46-mile, 10-in. diameter transmission pipeline originates at SMLP’s newly-built, Divide Station, which offers truck unloading capabilities and 75,000 barrels of crude oil storage capacity. The Stampede Lateral is underpinned by a long-term, fee-based contract with Global, including minimum volume commitments. Crude oil on the Stampede Lateral is delivered to Global’s Basin Transload rail terminal which offers single line haul rail access to Global’s Albany, New York terminal.

The Little Muddy pipeline will connect Summit Midstream’s Polar & Divide crude oil gathering system with Enbridge’s North Dakota Pipeline System in Williams County, North Dakota via Enbridge’s Little Muddy Facility located near Marmon, North Dakota. This development project includes 14-miles of 10-inch diameter crude oil transmission pipeline with throughput capacity of 27,000 bbls/d. Crude oil delivered to the Little Muddy Interconnect will gain pipeline access to various downstream markets including Chicago, Patoka, Cushing, Eastern Canada, and the Gulf Coast.