Summit Midstream Corporation’s Double E Pipeline subsidiary has reached a final investment decision on a $100 million mainline compression expansion project, supported by new long-term transportation agreements.
The expansion will add approximately 900 million cubic feet per day of forward haul capacity to Waha in the Delaware Basin, Texas, bringing total contracted firm capacity on the Double E system to 2.2 billion cubic feet per day. Summit has secured 550 million cubic feet per day in new long-term take-or-pay commitments through an open season, with an additional 450 million cubic feet per day of incremental capacity still under discussion with shippers.
The project, expected to enter service in the fourth quarter of 2028, involves installing a bi-directional mainline compressor station on the 135-mile interstate natural gas transmission pipeline. Summit Midstream will fund its $100 million share of the project costs through a combination of its existing capital resources and a $100 million committed financing capacity, including a $50 million accordion facility that has been converted to committed financing.
ExxonMobil holds a 30% ownership interest in the Double E pipeline, with Summit Midstream retaining a 70% stake. The financing for Summit Permian Transmission remains non-recourse to Summit Midstream Corporation. Purchase orders for the required gas turbine compression units have already been placed, though the project remains subject to approvals from the Federal Energy Regulatory Commission and other regulatory bodies.
The Double E pipeline commenced operations in November 2021.
