Summit Midstream Partners LLC announced Dec. 15 that it reached an agreement to develop and operate a natural gas gathering system in the Utica Shale for $400 million.

The gathering system will service XTO Energy Inc.'s, a subsidiary of ExxonMobil Corp. (NYSE: XOM), gas production from Belmont and Monroe counties in southeastern Ohio.

The system will be owned and developed by a new indirect subsidiary of Summit Investments, Summit Midstream Utica LLC (Summit Utica). XTO will serve as the anchor shipper and has dedicated about 29,000 acres to Summit Utica under a long-term, fee-based gathering agreement.

Summit Utica will gather, compress, and deliver natural gas produced by XTO into Regency Energy Partners LP's (NYSE: RGP) 2.1 billion cubic feet per day (Bcf/d) high-pressure Utica Ohio River Trunkline project, which is currently under construction, and other downstream delivery points.

Summit Utica will consist of over 115 miles of gathering pipeline with four natural gas compressor stations and will have an initial design capacity of about 500 MMcf/d.

The $400 million, multi-year development of the Summit Utica gathering system is currently underway and first flows to Regency Utica Ohio River are expected in the second half of 2015.

The gathering system is a significant step for the Summit enterprise, said Steve Newby, president and CEO of Summit Investments, in a statement.

"This development for XTO establishes Summit's operating presence in the Utica Shale Play," he said. "Additionally, this transaction increases Summit Investments' development backlog to more than $2 billion and complements our existing Ohio gathering joint venture with MarkWest Utica EMG where we currently own a 40% nonoperated interest."

Summit is the privately held company based in Dallas that owns and controls the general partner of Summit Midstream Partners LP (NYSE: SMLP) and also owns a 49.5% limited partner interest in SMLP.