Summit Midstream greenlights Double E pipeline compression expansion

Summit Midstream Corporation (NYSE: SMC) has made a final investment decision on a mainline compression expansion for its Double E Pipeline, supported by a new long-term firm transportation agreement with an investment-grade shipper, according to a company statement.

The expansion involves installing a bi-directional mainline compressor station that will increase the pipeline's forward haul capacity to the Waha Hub in Texas by approximately 900 MMcf/d. The project is expected to cost approximately $100 million, net to Summit's 70% ownership interest in the Double E joint venture, with an anticipated in-service date in the fourth quarter of 2028. ExxonMobil (NYSE: XOM) holds the remaining 30% interest.

A new 200 MMcf/d take-or-pay agreement brings total contracted firm capacity on the 135-mile FERC-regulated pipeline to approximately 2.2 Bcf/d. The open season generated 550 MMcf/d of new long-term take-or-pay commitments, with approximately 450 MMcf/d of incremental forward haul capacity remaining to be subscribed.

To fund its share of capital contributions, Summit Permian Transmission converted a previously uncommitted $50 million accordion under its existing $440 million senior secured term facility into a committed facility. Combined with a $50 million committed delayed draw term facility established in March 2026, total committed financing capacity reaches $100 million. The term facility matures in March 2031 and remains non-recourse to SMC.

The Double E joint venture has placed a purchase order for long-lead gas turbine compression units to secure manufacturing slots for the targeted in-service date. The project remains subject to FERC and other regulatory approvals.

Chief Executive Officer Heath Deneke said the open season results "reinforces the value of that position" and that the company expects to "enter into long-term contracts for the remaining expansion capacity in the coming months." He added that when fully subscribed, Summit expects its Permian Segment Adjusted EBITDA to grow from approximately $37 million in 2026 to over $100 million by 2030.

Double E commenced operations in November 2021 and provides transportation service from the Delaware Basin to delivery points around the Waha Hub in Texas.

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