Summit Midstream Corporation's Double E Pipeline has reached a final investment decision on a mainline compression expansion, backed by a new 200 MMcf/d take-or-pay firm transportation agreement with an investment-grade shipper. The agreement brings Double E's total contracted firm capacity to approximately 2.2 Bcf/d. The expansion is expected to enter service in the fourth quarter of 2028.
Summit expects to spend approximately $100 million, net to its 70% interest in Double E, on the compression station and related plant connections and infrastructure. Summit Permian Transmission converted a previously uncommitted $50 million accordion under its $440 million senior secured term facility, which matures in March 2031, into a committed facility. Combined with a $50 million committed delayed draw term facility set up when that facility closed in March 2026, Summit says it now has the commitments needed to fund its expected capital contributions to Double E. The Summit Permian Transmission facility is non-recourse to Summit Midstream Corporation.
The compression project
The expansion adds a bi-directional mainline compressor station to the Double E system, increasing the pipeline's forward haul capacity to the Waha hub by approximately 900 MMcf/d. 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 needs FERC and other customary regulatory approvals.
| Metric | Figure |
|---|---|
| New firm transportation agreement | 200 MMcf/d |
| Total contracted firm capacity | ~2.2 Bcf/d |
| Added forward haul capacity to Waha | ~900 MMcf/d |
| Net capital cost (Summit's 70% share) | ~$100 million |
| Expected in-service date | Q4 2028 |
Capacity commitments
The open season for the compression expansion produced 550 MMcf/d of new binding long-term take-or-pay commitments, which underpinned the final investment decision. Double E is still in discussions with shippers over the remaining 450 MMcf/d of incremental forward haul capacity from the expansion. Total firm capacity under contract on the pipeline, spanning existing and new shippers, is now about 2.2 Bcf/d, held mostly by investment-grade counterparties.
Management's outlook
Heath Deneke, Summit's president, chief executive officer and chairman, said the open season results and the new contracts reflect continued shipper demand for gas transmission capacity out of the Delaware Basin. He said Summit expects its Permian Segment Adjusted EBITDA to grow from approximately $37 million in 2026 to more than $100 million by 2030 once the expansion is fully subscribed. Deneke pointed to data center development in Texas and New Mexico, along with demand from additional egress pipelines seeking access to Permian gas supply, as further growth opportunities for Double E beyond the compression expansion.
