Midstream - Transportation & Pipelines

Summit Midstream Provides Update on Double E Pipeline

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   |    Friday,November 09,2018

Double E Pipeline Project Update

The project details, including maps can be found here.

In July 2018, Summit Midstream entered into a agreement with XTO Energy/Exxonration for firm transportation capacity on the Double E Pipeline Project under a 10-year take-or-pay agreement which increases up to 500,000 dekatherms per day. 

In August and September of 2018, Summit Midstream conducted a binding open season process to gauge market interest in the Project and obtain additional firm transportation commitments on Double E.  As a result of the binding open season, Summit Midstream executed additional precedent agreements with new shippers and is continuing to discuss potential firm volume commitments with other prospective shippers. 

Summit Midstream expects to make its final investment decision ("FID") on Double E once these negotiations have concluded, given that the outcome of these discussions could have a material impact on the scope of the Project.  The Project will provide up to 1.5 Bcf/d of residue natural gas transportation capacity from the northern Delaware Basinto the Waha Hub. 

Summit Midstream remains on schedule for its original target in-service date for the Project of the second quarter of 2021; however, the ultimate in-service date of the Project will be subject to, among other things, the timing of the FID and approval by the Federal Energy Regulatory Commission ("FERC") and other governmental authorities.

Summit Midstream and ExxonMobil executed an equity option agreement in July 2018, which provides ExxonMobil, or an affiliate, the right to become an equity partner in Double E.  We expect ExxonMobil to make a decision on its equity option agreement by June 30, 2019.  Summit Midstream has also received significant interest from other potential shippers and financial parties regarding equity participation in the Project.