Steel Reef Infrastructure Corp. has completed a $40 million purchase of natural gas gathering assets in North Dakota’s Burke and Mountrail counties from Summit Midstream Holdings LLC.

The assets comprise 400 miles of gathering lines and six additional compressor stations adjacent to Steel Reef’s current infrastructure, the company said, adding it will pay for the new assets with cash on hand.

“Expanding our presence in North Dakota allows Steel Reef to offer a depth of service to customers and enhance the energy community for our stakeholders,” said CEO Scott Southward. “As associated gas capture leaders, we are excited to bring our expertise in emission reduction to the area, allowing our customers to optimize their netbacks by converting their associated gas into valuable end products while reducing the emissions of each barrel produced.”

Calgary-based Steel Reef operates infrastructure that captures, processes and transports associated natural gas tied to oil production in the Western Canadian Sedimentary Basin and Bakken Shale.

Gas capture and flare mitigation have become top priorities for Bakken operators amid pressure to reduce emissions and capitalize on high natural gas prices. 

The state’s producers captured a record 3 Bcf/d of natural gas production in July, according to state regulators.

Natural gas production, meanwhile, rose 1.5% in the month versus June, even as oil output by 2.5%.