The expansion involves installing a bi-directional mainline compressor station and associated infrastructure, requiring an estimated $100 million in capital expenditures net to Summit's 70% stake. To secure the timeline, the company has already placed orders for long-lead gas turbine compression units. The project remains subject to standard regulatory approvals, including those from the Federal Energy Regulatory Commission.
Summit Midstream Approves Double E Pipeline Expansion in Delaware Basin
Summit Midstream Corporation has reached a final investment decision to expand its Double E pipeline system, targeting a fourth-quarter 2028 completion date. The project, designed to boost forward haul capacity to the Waha Hub by 900 million cubic feet per day, is backed by new long-term shipper commitments.
Financial support for the venture is anchored by 550 MMcf/d in new long-term take-or-pay agreements secured during a successful open season. Summit bolstered its funding capacity by converting a $50 million uncommitted accordion into a committed facility under its existing senior secured term loan. Management expects the expansion to drive Permian Segment Adjusted EBITDA from approximately $37 million in 2026 to over $100 million by 2030. Beyond current capacity goals, executives are eyeing future demand from data center developments in Texas and New Mexico as a primary driver for long-term growth.
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