Summit Midstream Corporation and ExxonMobil's Double E Pipeline, LLC reached a final investment decision on Aug. 31, 2026, on a mainline compression expansion of the Double E system. The expansion will add about 900 MMcf/d of forward haul capacity to the Waha Hub in Texas and is expected in service in the fourth quarter of 2028.

Capacity and contracts

The expansion is backed by a new long-term, take-or-pay firm transportation agreement with an investment-grade shipper for 200 MMcf/d. That agreement is included in the roughly 550 MMcf/d of binding long-term take-or-pay commitments Double E secured through the compression expansion's open season, which underpinned the final investment decision. Double E said it is still discussing the remaining 450 MMcf/d of incremental forward haul capacity with other prospective shippers.

Across the whole system, the new agreement brings Double E's total contracted firm capacity to approximately 2.2 Bcf/d. That capacity is held by a mix of shippers, most investment grade, according to the company.

  • Added forward haul capacity: about 900 MMcf/d
  • Committed through the open season: about 550 MMcf/d
  • Still being marketed: about 450 MMcf/d
  • Total system-wide contracted firm capacity: about 2.2 Bcf/d

Project and financing

The expansion consists of a bi-directional mainline compressor station along with new plant connections and related infrastructure. The Double E joint venture has already placed a purchase order for the long-lead gas turbine compression units the project needs, securing manufacturing slots to support the fourth-quarter 2028 target. The project still requires approval from the Federal Energy Regulatory Commission and other customary regulatory sign-offs.

Summit expects to spend approximately $100 million net to its 70% interest in Double E. The company said that spending will be funded through the term loan previously arranged at Summit Permian Transmission and a $50 million accordion facility it just converted from uncommitted to committed. Combined with a $50 million committed delayed draw term facility set up when Summit Permian Transmission closed in March 2026, Summit's total committed financing capacity is now $100 million, which the company said funds its expected capital contributions to Double E. The Summit Permian Transmission term facility, part of a $440 million senior secured facility maturing in March 2031, is non-recourse to Summit Midstream Corporation.

Deneke on demand growth

Heath Deneke, Summit's president, chief executive and chairman, said the open season response confirms Double E's importance to producers and processors in the Delaware Basin. He said Summit continues to see "tremendous production growth surrounding our Delaware Basin operating footprint" and expects to sign contracts for the remaining expansion capacity in the coming months.

Deneke said that once the project is fully subscribed, Summit expects its Permian Segment Adjusted EBITDA to grow from about $37 million in 2026 to more than $100 million by 2030. He pointed to data center development in Texas and New Mexico, along with additional pipelines seeking more access to gas supply from the Permian, as new sources of demand for the system. Deneke said Double E's connections to gas processing facilities in the basin and to the Waha Hub give it access to those markets, and that the system's bi-directional design lets Summit nearly double its outlook for the business in the years ahead.

About the pipeline

Double E is a 135-mile, FERC-regulated interstate natural gas pipeline that has carried gas from the Delaware Basin to the Waha Hub since entering service in November 2021. Summit Midstream Permian II, LLC operates the system, which is owned 70% by Summit and 30% by ExxonMobil. Summit is a Houston-based company that builds, owns and operates midstream infrastructure across five unconventional resource basins in the continental United States.