The sanctioned project will add a bi-directional mainline compressor station, new plant connections and related infrastructure, with Summit estimating approximately $100 million of investment net to its 70% interest.
Published by Allstream Insiders
Allstream Insiders Summary
Double E Pipeline has reached a final investment decision on a mainline compression expansion designed to add approximately 900 million cubic feet per day of forward-haul capacity toward the Waha Hub. Summit Midstream expects the project to enter service during the fourth quarter of 2028, subject to Federal Energy Regulatory Commission and other customary regulatory approvals.
The project includes a bi-directional mainline compressor station, incremental connections to natural gas processing plants and related infrastructure. Summit estimates its investment at approximately $100 million net to its 70% ownership interest in Double E. That figure is Summit’s expected share and should not be represented as the expansion’s total gross cost.
Double E reached the investment decision after completing an open season and signing a new long-term take-or-pay firm transportation agreement with an investment-grade shipper for 200 MMcf/d. Summit said the open season produced approximately 550 MMcf/d of binding long-term take-or-pay commitments.
The Double E joint venture has already ordered the long-lead gas turbine compression units needed for the project. Summit did not identify the equipment manufacturer or disclose additional construction or contractor awards.
Double E Compression Expansion Tracker
| Project item | Company-reported detail |
|---|---|
| Project | Double E Pipeline Mainline Compression Expansion |
| Stage | Final investment decision reached; regulatory approvals remain pending |
| Primary scope | Bi-directional mainline compressor station, incremental plant connections and related infrastructure |
| Added forward-haul capacity | Approximately 900 MMcf/d toward Waha |
| Summit investment | Approximately $100 million net to Summit’s 70% interest; gross project cost not stated |
| New transportation agreement | 200 MMcf/d under a long-term take-or-pay agreement with an unnamed investment-grade shipper |
| Open-season commitments | Approximately 550 MMcf/d of binding long-term take-or-pay commitments |
| Targeted in-service date | Fourth quarter 2028 |
| Ownership and operations | Summit subsidiaries 70%; ExxonMobil subsidiary 30%; Summit Midstream Permian II operates the pipeline |
What will the Double E compression expansion include?
The sanctioned scope centers on a new bi-directional mainline compressor station. Summit said the compression installation will increase Double E’s forward-haul capacity toward the Waha Hub by approximately 900 MMcf/d.
The project also includes incremental natural gas processing plant connections and related infrastructure. Summit did not provide the compressor station’s exact location, installed horsepower, number of units, station layout or detailed interconnection list in the August 31 announcement.
The Double E joint venture placed a purchase order for the required long-lead gas turbine compression units before the final investment decision. Summit said the order secured manufacturing slots needed to support the planned 2028 schedule. The announcement does not identify the turbine-compressor supplier or purchase-order value.
Long-term transportation commitments support the investment decision
Double E concluded its open season with approximately 550 MMcf/d of binding long-term take-or-pay commitments. The latest contract covers 200 MMcf/d with an unnamed investment-grade shipper.
Summit said total contracted firm capacity on Double E is now approximately 2.2 Bcf/d. The company is continuing discussions with prospective shippers regarding additional expansion capacity.
The release refers separately to approximately 900 MMcf/d of added forward-haul capacity from the compressor station and 450 MMcf/d of remaining capacity being discussed with prospective shippers. The article preserves those company-reported figures without attempting to reconcile or recalculate the commercial capacity available under individual contracts.
Summit expects to invest $100 million net to its Double E interest
Summit expects its share of the compression project, new plant connections and related infrastructure to total approximately $100 million. Summit owns 70% of Double E, while an ExxonMobil subsidiary owns the remaining 30%.
The $100 million figure is expressly stated net to Summit’s interest. Summit did not disclose a gross project-cost estimate for the entire joint venture.
Summit Permian Transmission converted a previously uncommitted $50 million accordion under its term-loan facility into a committed facility. Combined with an existing $50 million committed delayed-draw facility, Summit said it now has $100 million of committed financing capacity to fund its expected Double E contributions. The financing is non-recourse to Summit Midstream Corporation.
The fourth-quarter 2028 schedule remains subject to approvals
Summit currently targets the fourth quarter of 2028 for the expansion to enter service. The company has reached a commercial final investment decision and ordered long-lead compression equipment, but the project remains subject to FERC and other customary regulatory approvals.
The in-service date is therefore a company target rather than a guaranteed completion date. Summit did not identify a filed or approved FERC certificate for the expansion in the announcement.
Double E connects the Delaware Basin with the Waha Hub
Double E is a 135-mile interstate natural gas transmission pipeline operating between Delaware Basin receipt points and delivery points in and around the Waha Hub in Texas. The FERC-regulated system began operating in November 2021.
Summit said additional processing-plant connections and the system’s bi-directional capability could support further market connectivity. Management also cited possible future demand associated with data center development in Texas and New Mexico and additional egress pipelines.
Those data center references describe potential growth opportunities, not executed Project Double E customer agreements. Summit did not name a data center developer, power project, gas-supply contract or data center connection associated with the compression expansion.
Allstream perspective: compression equipment is ordered, but most awards remain undisclosed
The long-lead gas turbine compression package is the only procurement commitment identified in Summit’s announcement. As the project advances through permitting and detailed execution, the disclosed scope could involve:
- Compressor station engineering, site development and foundations
- Gas turbine and compressor installation and mechanical completion
- Station piping, valves, metering and pressure-control systems
- Electrical, instrumentation, automation and communications systems
- Processing-plant connections and pipeline interconnect construction
- Inspection, testing, commissioning and startup support
These categories are Allstream analysis based on Summit’s announced project configuration. They are not confirmed bid packages, solicitations or contractor awards. Summit has not identified an engineering, procurement and construction contractor, construction contractors or the supplier of the ordered compression units.
