THE WOODLANDS, Texas,
Aug. 6, 2018 /PRNewswire/ -- Summit
Midstream Partners, LP (NYSE: SMLP) hereby announces that its
subsidiary, Summit Permian Transmission, LLC (collectively, with
SMLP, "Summit"), is holding a binding open season ("Open Season")
for firm transportation capacity on its Double E Pipeline (referred
to herein as "Double E" or the "Project"). The Project will
provide natural gas transportation service from various receipt
points in the Delaware Basin to
various delivery points in and around the Waha Hub, thereby
connecting a growing supply of associated natural gas 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 second quarter of 2021; however, the
ultimate in-service date of the Project will be subject to, among
other things, approval by the Federal Energy Regulatory Commission
("FERC") and other governmental authorities, and actual
construction of the facilities.
This Open Season will commence at 9:00
a.m. CDT on Monday, August 6, 2018, and end at 4:00 p.m. CDT
on Friday, September 14, 2018.
Summit invites parties interested in obtaining firm
transportation service on Double E to submit binding bids for such
capacity during this Open Season.
Project Description
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. Actual pipeline sizing, capacity and
route will depend on, among other things, the level of contractual
subscriptions entered into as a result of this Open Season.
Rates
A cost of service-based, daily reservation
recourse rate will be available for transportation service under
the Project, and this 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 offers shippers that execute a binding Precedent
Agreement in this Open Season the opportunity to receive
transportation service at negotiated rates, for a minimum term of
10-years, in lieu of the generally available recourse rates.
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 FERC for
transportation service under the Project, all as amended from time
to time.
Summit has entered into a long-term binding commitment with a
foundation shipper for up to 500,000 dth/d of firm transportation
capacity on Double E. The commitment with the foundation
shipper has been determined to be a prearranged conforming bid, and
will not be subject to prorationing of capacity as a result of the
outcome of this Open Season.
Term
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.
Receipt Points
Eligible firm receipt points may
include new plant interconnects and new pipeline receipt laterals,
both of which must be located in the northern Delaware Basin. Summit will consider
receipt point requests outside of such parameters, but reserves the
right to reject any such non-conforming receipt point request at
its sole discretion, which it will exercise in a not unduly
discriminatory manner.
Delivery Points
Eligible firm delivery points may
include third party intrastate or interstate pipeline interconnects
and additional other delivery points, all of which must be located
in the Waha area. Summit will consider delivery point
requests outside of such parameters, but reserves the right to
reject any such non-conforming delivery point request at its sole
discretion, which it will exercise in a not unduly discriminatory
manner.
Open Season Procedure
Any shipper desiring firm
transportation service under the Project must complete the Open
Season-Double E Pipeline Precedent Agreement (the "Precedent
Agreement") found here:
http://www.doubleepipeline.com/OpenSeason/PrecedentAgreement, which
must be signed by a duly authorized representative of the
requesting shipper, and deliver the completed Precedent Agreement
by email to doubleepipeline@summitmidstream.com by the date and
time indicated above, along with a completed and signed
Confidentiality Agreement found here:
http://doubleepipeline.com/CAOpenSeason.pdf.
Summit reserves the right to reject and remove from
consideration non-conforming bids, bids that have a delayed
in-service requirement or other contingencies. Summit also
reserves the right to reject any bid it deems, in its sole
discretion, to be uneconomic. Bids that include a Precedent
Agreement with any changes to, or that leave provisions blank in
the applicable form, will be deemed "non-conforming" bids.
Summit may reject non-conforming bids, or, if the non-conforming
provisions are otherwise acceptable, Summit may, in its sole
discretion, deem a non-conforming bid "acceptable" and include the
bid as part of the firm capacity allocation process. Summit
will exercise its discretion in this regard in a not unduly
discriminatory manner.
Summit will award firm capacity based on the highest net present
value of the stream of incremental revenue produced by an
acceptable bid, or combination of acceptable bids, received in this
Open Season, up to the total quantity that results from the
facilities that Summit determines, in its sole discretion, to
construct.
Any requirement that a shipper provide credit support will be
governed by, and determined in accordance with, the terms of the
shipper's Precedent Agreement.
This Open Season will close 4:00 p.m. CDT on Friday, September 14, 2018.
Additional information regarding the Project is available at
www.doubleepipeline.com.
If you have any questions regarding this Open Season, please
contact:
Forbes
Herring
Director - Business
Development
Summit Midstream
Partners, LP
Office:
214.242.1962
fherring@summitmidstream.com
|
Ryan
Simmons
SVP - Business
Development
Summit Midstream
Partners, LP
Office:
770.504.5002
rsimmons@summitmidstream.com
|
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,
Atlanta, Georgia, Pittsburgh, Pennsylvania and Dallas, Texas.
About Summit Midstream Partners, LLC
Summit Midstream
Partners, LLC ("Summit Investments") beneficially owns a 35.2%
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.
Forward-Looking Statements
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 2017 Annual Report on Form 10-K filed with the
Securities and Exchange Commission on February 26, 2018, 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.
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SOURCE Summit Midstream Partners, LP