US-based energy company Summit Midstream has announced that the Double E Pipeline has completed its open season and made a final investment decision (FID) to proceed with a mainline compression expansion.
The Double E Pipeline is a 135-mile pipeline that transports natural gas from the Delaware Basin to various delivery points around the Waha Hub in Texas.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
It began operations in November 2021 and is a Federal Energy Regulatory Commission (FERC)-regulated interstate natural gas transmission pipeline.
Summit Midstream Permian II, a subsidiary of Summit Midstream, serves as the operator of the pipeline.
The project is backed by a new long-term firm transportation agreement with an investment-grade shipper.
According to the company, the compression expansion project is expected to become operational in the fourth quarter of 2028 (Q4 2028).
The expansion involves installing a bi-directional mainline compressor station on the Double E system, designed to boost forward haul capacity to Waha by around 900 million cubic feet per day (mcf/d).
Following this development, contracted firm capacity on Double E has risen to approximately 2.2 billion cubic feet per day.
The new long-term take-or-pay agreement secures transportation for 200mcf/d, while total binding long-term commitments through the open season now stand at 550mcf/d.
Summit Midstream president, CEO and chairman Heath Deneke said: “Today’s announcement is a significant milestone for Summit and Double E and further demonstrates the importance of the pipeline to producers and processors in the Delaware Basin.
“Double E provides reliable gas transmission service with access to multiple downstream markets, and we continue to expand that connectivity as the basin grows.
“The strong shipper interest we have seen through the open season reinforces the value of that position and our confidence in the long-term growth opportunity for Double E.”
The compression expansion, new plant connections and related infrastructure are expected to cost approximately $100m in total. Summit Midstream will fund 70% of that amount in line with its ownership stake, while the remaining 30% interest is held by an ExxonMobil subsidiary.
The expansion is still subject to approval by the FERC and other regulatory bodies.
The joint venture has secured orders for the required gas turbine compression units to align with the projected service commencement date.
To fund its expected capital contributions, Summit Permian Transmission has converted a $50m uncommitted accordion under its existing $440m senior secured term facility into a committed facility, bringing the total committed financing capacity to $100m.
The term facility matures in March 2031 and remains non-recourse to Summit Midstream.
