CenterPoint Energy, XTO Energy Partner to Gather Crude in Bakken
The North Dakota oil boom continues to roll along. A new partnership will seek to provide additional gathering and transportation capacity in the Bakken region.
CenterPoint Energy Bakken Crude Services LLC (CEBCS), an indirect, wholly owned subsidiary of CenterPoint Energy Inc., announced it has entered into a long-term agreement with XTO Energy Inc., a subsidiary of Exxon Mobil Corp., to gather XTO’s crude oil production through a new crude oil gathering and transportation pipeline system in North Dakota’s liquids-rich Bakken shale. The agreement with XTO is the first agreement entered into pursuant to the open season announced by CEBCS on Feb. 19.
Under the terms of this new agreement, which includes volume commitments, CEBCS will provide service to XTO over a gathering system to be constructed in Dunn and McKenzie counties, North Dakota. The gathering system will have a capacity of up to 19,500 barrels per day (bpd).
“We are extremely pleased to provide long-term crude oil gathering services for such an outstanding producer, and we appreciate the confidence they have placed in our current and expanding capabilities,” said C. Gregory Harper, senior vice president and group president of CenterPoint Energy’s Midstream business. “Our excellent track record of developing gathering systems on time and on budget continues to provide us with opportunities, and positions us to execute our strategy of expanding into liquids-rich basins.”
CenterPoint Energy, headquartered in Houston, is a domestic energy delivery company that includes electric transmission and distribution, natural gas distribution, competitive natural gas sales and services, interstate pipelines and field services operations. The company serves more than 5 million metered customers primarily in Arkansas, Louisiana, Minnesota, Mississippi, Oklahoma and Texas. Assets total more than $22 billion.
“This agreement presents significant growth opportunities,” said Scott Prochazka, executive vice president and chief operating officer of CenterPoint Energy. “It leverages our core competencies while allowing us to diversify our product gathering capabilities and geographic footprint.”
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