Gov. Jack Dalrymple, Aux Sable Midstream, LLC and Summit Midstream Partners, LP today announced the completion of a natural gas purchase agreement to transfer from western North Dakota as much as 25 million cubic feet of natural gas per day for processing in Illinois. The agreement between Aux Sable and Summit Midstream creates a direct and long-term market for North Dakota natural gas and will enhance the state's ongoing efforts to reduce flaring.
"We continue to work with private industry to expand our take-away capacity, to add value to the natural gas produced in western North Dakota and to reduce the flaring of this valuable energy resource," Dalrymple said. "This project aligns with our overriding goals and I commend Aux Sable Midstream and Summit Midstream Partners for their commitment to move more North Dakota natural gas to market."
The agreement calls for Summit Midstream Partners to supply Aux Sable Midstream with natural gas collected at Summit Midstream Partner's Bison pipeline gathering system in Burke and Mountrail counties. Aux Sable will purchase as much as 25 million cubic feet of natural gas per day, with options to increase the supply. The natural gas will be transported via Aux Sable Midstream's Prairie Rose Pipeline and the Alliance Pipeline for processing at Aux Sable's natural gas liquids processing plant in Channahon, Ill.
State officials continue working with the energy industry to develop other projects to reduce flaring and add value to North Dakota natural gas. Additionally, the state is providing research funding and tax incentives for the energy industry to expand its capacity to capture, ship and process natural gas.
Since 2010, the energy industry in North Dakota has more than tripled the amount of natural gas it gathers at oil well sites and sends to market. Today, the energy industry is capturing about 642 million cubic feet of natural gas every day compared to the 205 million cubic feet per day captured three years ago. Still, the industry must continue to expand its capture of natural gas as more and more oil wells come on line in western North Dakota. Reducing the flaring of natural gas requires a committed effort between landowners, the energy industry, tribal leaders as well as local, state and federal government.