THE WOODLANDS, Texas, Jan. 29, 2018 /PRNewswire/ -- Summit Midstream Partners, LP ("Summit") (NYSE: SMLP) hereby announces that it is holding a non-binding open season ("Open Season") for its Double E Pipeline (referred to herein as "Double E" or "Project"). The Project will provide firm natural gas transportation service from various receipt points in the Delaware Basin to various delivery points in and around the Waha Hub, connecting a growing associated natural gas supply basin to a liquid trading point with multiple current and planned takeaway pipelines to demand centers along the United States Gulf Coast and Mexico. The target in-service date for the Project is the first quarter of 2021.
This Open Season will commence at 9:00 a.m. CST on Monday, January 29, 2018 and end at 4:00 p.m. CST on Friday, March 2, 2018.
The Project will consist of approximately 120 miles of 24" to 36" diameter pipe with a capacity of approximately 1.0 Bcf/d (without compression), expandable to approximately 1.4 Bcf/d (with compression). Double E will provide natural gas transportation service from the northern Delaware Basin to the Waha Hub in northern Pecos County, Texas, servicing various receipt points in Eddy and Lea counties in New Mexico and Loving, Ward, Reeves and Pecos counties in Texas. The Project will have multiple direct downstream connections based on shipper demand and preferences. Additional receipt laterals and extensions are being contemplated as well. The approximate route for the Project is depicted on the enclosed Project Map.
A cost of service-based, daily reservation recourse rate will be available for transportation service under the Project, as such rate may change from time to time. The estimated initial recourse rate will be calculated using Summit's estimated cost of the Project facilities, estimates for operation and maintenance expenses based on costs for similar facilities, the billing determinants under the Project, and other cost factors.
Summit also may, but will not be obligated to, offer shippers a negotiated daily reservation rate for transportation service under the Project.
All reservation rates will be dependent on the final Project scope and facility requirements, which will be determined following the completion of this Open Season.
In addition to the applicable daily reservation rates, shippers may also be responsible for compressor fuel and line loss make-up retention, electric power charges, commodity charges and all applicable surcharges as approved or required by the Federal Energy Regulatory Commission for transportation service under the Project, all as amended from time to time.
The primary term for firm transportation service under the Project will be 10 years or longer. Summit may consider but reserves the right to not accept any requests for firm transportation service under the Project with a requested primary term of less than 10 years.
Open Season Procedure
Any shipper desiring firm transportation service under the Project must complete the Non-Binding Open Season-Double E Pipeline Service Request (the "Request Form") found here: http://doubleepipeline.com/OpenSeasonRequestForm.pdf, which must be signed by a duly authorized representative of the requesting shipper, and deliver the completed Request Form by email to email@example.com by the date and time indicated above, along with a completed and signed Confidentiality Agreement found here: http://doubleepipeline.com/CAOpenSeason.pdf. Both the Request Form and Confidentiality Agreement are also available at www.doubleepipeline.com.
Depending on the results of this Open Season, Summit may determine that multiple projects may be pursued instead of a single project, and Summit therefore reserves the right to modify the Project contemplated herein and pursue multiple projects, or elect to do nothing.
Upon receipt of all timely submitted Request Forms, Summit will evaluate the total capacity requested and determine the final scope of the Project or multiple projects. Summit, in its sole discretion, may (i) revise the anticipated scope and/or capacity of the Project including, without limitation, by changing the receipt and delivery points, (ii) decide not to pursue the Project or any other project, or (iii) develop alternatives to the Project that suit the needs reflected in the results of this Open Season.
If Summit allocates the available firm transportation capacity under the Project, then the capacity will be allocated first to shipper(s) with the longest requested primary contract term (and if there is a tie among shippers with the longest requested primary contract term, then capacity will be allocated first to such shippers on a pro rata basis).
Summit reserves the right to accept or reject any requests for service under the Project on a not unduly discriminatory basis. More information regarding the Project is available at www.doubleepipeline.com.
If you have any questions regarding this Open Season, please contact:
Director - Business Development
Summit Midstream Partners, LP
About Summit Midstream Partners, LP
SMLP is a growth-oriented limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental United States. SMLP provides natural gas, crude oil and produced water gathering services pursuant to primarily long-term and fee-based gathering and processing agreements with customers and counterparties in five unconventional resource basins: (i) the Appalachian Basin, which includes the Marcellus and Utica shale formations in West Virginia and Ohio; (ii) the Williston Basin, which includes the Bakken and Three Forks shale formations in North Dakota; (iii) the Fort Worth Basin, which includes the Barnett Shale formation in Texas; (iv) the Piceance Basin, which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado and Utah; and (v) the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming. SMLP is in the process of developing new gathering and processing infrastructure in a sixth basin, the Delaware Basin, in New Mexico. SMLP also owns substantially all of a 40% ownership interest in Ohio Gathering, which is developing natural gas gathering and condensate stabilization infrastructure in the Utica Shale in Ohio. SMLP is headquartered in The Woodlands, Texas, with regional corporate offices in Denver, Colorado and Atlanta, Georgia.
About Summit Midstream Partners, LLC
Summit Midstream Partners, LLC ("Summit Investments") beneficially owns a 35.4% limited partner interest in SMLP and indirectly owns and controls the general partner of SMLP, Summit Midstream GP, LLC, which has sole responsibility for conducting the business and managing the operations of SMLP. Summit Investments is a privately held company controlled by Energy Capital Partners II, LLC, and certain of its affiliates. An affiliate of Energy Capital Partners II, LLC directly owns an 8.1% limited partner interest in SMLP.
This press release includes certain statements concerning expectations for the future that are forward-looking within the meaning of the federal securities laws. Forward-looking statements contain known and unknown risks and uncertainties (many of which are difficult to predict and beyond management's control) that may cause SMLP's actual results in future periods to differ materially from anticipated or projected results. An extensive list of specific material risks and uncertainties affecting SMLP is contained in its 2016 Annual Report on Form 10-K as updated and superseded by the Current Report on Form 8-K filed with the Securities and Exchange Commission on November 6, 2017, and as amended and updated from time to time. Any forward-looking statements in this press release are made as of the date of this press release and SMLP undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.
Contact: Marc Stratton, Senior Vice President and Treasurer, 832-608-6166, firstname.lastname@example.org
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SOURCE Summit Midstream Partners, LP