Summit Midstream has announced a final investment decision to proceed with a mainline compression expansion of the Double E Pipeline after successfully completing an open season and securing a long-term transportation agreement with an investment-grade shipper.

The $100 million infrastructure project will add a bi-directional mainline compressor station to the system, boosting its forward-haul capacity to the Waha Hub in Texas by roughly 900 million cubic feet per day (mcf/d).

Total contracted firm capacity on the natural gas line has now climbed to approximately 2.2 billion cubic feet per day.

The newly executed take-or-pay agreement secures firm transportation for 200 mcf/d. Combined with previous commitments, total binding long-term contracts resulting from the open season reach 550 mcf/d.

Operational since November 2021, Double E is a 135-mile interstate natural gas transmission pipeline regulated by the Federal Energy Regulatory Commission (FERC).

It moves natural gas from the Delaware Basin to several delivery points near Waha. The pipeline is operated by Summit Midstream Permian II, a subsidiary of Summit Midstream.

"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," said Heath Deneke, president, CEO, and chairman of Summit Midstream.

"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."

Summit Midstream holds a 70% stake in the joint venture and will fund its proportional share of the expansion cost, while an ExxonMobil subsidiary owns the remaining 30% interest.

To finance its share, Summit Permian Transmission converted a $50 million uncommitted accordion under its $440 million senior secured term facility into a committed facility. The term facility matures in March 2031 and remains non-recourse to Summit Midstream.

The joint venture has already ordered the necessary gas turbine compression units. Subject to FERC and other regulatory approvals, the expansion is expected to enter service in the fourth quarter of 2028.