Summit Midstream has reached a final investment decision on the Double E Pipeline mainline compression expansion after securing new long-term transportation commitments, advancing a project expected to significantly increase the Permian segment’s capacity and earnings.
The expansion is expected to require approximately $100 million of investment net to Summit’s 70% ownership position and enter service during the fourth quarter of 2028.
A new long-term take-or-pay agreement with an investment-grade shipper covers 200 MMcf/d.
Combined with other commitments secured during the open season, Double E now has approximately 550 MMcf/d of new binding long-term commitments and approximately 2.2 Bcf/d of total contracted firm capacity.
Summit continues discussions to subscribe another 450 MMcf/d of incremental forward-haul capacity.
The physical expansion will add a bi-directional mainline compressor station and increase forward-haul capacity to the Waha Hub by approximately 900 MMcf/d.
New plant connections and related infrastructure are also included.
Double E has already ordered long-lead gas turbine compression units to preserve the targeted construction schedule.
Summit expects its Permian Segment adjusted EBITDA to increase from approximately $37 million in 2026 to more than $100 million by 2030 if the expansion becomes fully subscribed.
Management also sees longer-term demand from data centers being developed in Texas and New Mexico.
Financing is already in place.
Summit Permian Transmission converted a previously uncommitted $50 million accordion under its $440 million senior secured term facility into committed capacity.
Together with an existing $50 million delayed-draw facility, Summit expects the financing to cover all anticipated capital contributions to Double E.
KEY QUOTE:
“When the project is fully subscribed, we expect our Permian Segment Adjusted EBITDA to grow from approximately $37 million in 2026 to over $100 million by 2030.”
Heath Deneke, President, CEO And Chairman Of Summit Midstream
