Enable Midstream Partners LP has secured two more agreements with XTO Energy Inc. to build a second crude oil gathering system, as well as one for produced water, in North Dakota's Bakken Shale.
Under terms of the long-term agreements with the ExxonMobil Corp. subsidiary, 85 miles of gathering lines for crude oil would be built in Williams and Mountrail counties, with capacity of up to 30,000 b/d. The produced water system would have 75 miles of gathering lines. Both systems are to begin operations before the end of June 2015. No financial details were disclosed.
"These new contracts allow us to expand our asset infrastructure and to increase our crude oil and water service offerings in the Williston Basin," said Enable CEO Lynn Bourdon. "Having a successful customer like XTO sign up as an anchor tenant on a second gathering system in this region demonstrates their confidence in our abilities as a service provider."
Enable agreed last year to build a crude oil system for XTO in North Dakota's Dunn and McKenzie counties. Initial operations began in November and once in full operation there would be up to 19,500 b/d of capacity.
ExxonMobil's gross operated production in the Bakken during 3Q2013 hit a record 65,000 boe/d (see Shale Daily, Oct. 31, 2013). From July through September, oil equivalent production increased by 81% year/year in the shale play, driven by a record 85 wells turned to sales year-to-date. ExxonMobil also has gained momentum in the Williston Basin from its 2012 purchase of Denbury Resources Inc.'s entire North Dakota and Wyoming portfolio, including 196,000 net acres and an interest in carbon dioxide reserves in the LaBarge field (see Shale Daily, Dec. 4, 2012).
Enable was formed last May through a joint venture that combined CenterPoint Energy Inc.'s interstate pipelines/field services and the assets of Enogex LLC (see Shale Daily, March 18, 2013). The initial formation of the master limited partnership included 8,400 miles of interstate and 2,300 miles of intrastate pipelines in Oklahoma, Arkansas, Texas and Louisiana. Enable now has about 11,000 miles of gathering pipelines, 12 processing plants with 2.1 Bcf/d of processing capacity and eight storage facilities comprising 86.5 Bcf of capacity.