Summit Midstream has reached a final investment decision (FID) to expand the Double E Pipeline, a 135-mile interstate natural gas system connecting the Delaware Basin with delivery points around the Waha Hub in West Texas. The project follows a completed open season and is supported by new long-term transportation commitments from shippers, providing commercial backing for additional Permian Basin gas takeaway capacity.
The expansion will add a bi-directional mainline compressor station capable of increasing forward-haul capacity toward Waha by approximately 900 million cubic feet per day (MMcf/d). Double E now has approximately 2.2 billion cubic feet per day (Bcf/d) of contracted firm capacity, including 550 MMcf/d of binding long-term commitments secured through the open season. A new investment-grade shipper has committed to 200 MMcf/d under a long-term take-or-pay agreement.
The compression expansion, new plant connections and associated infrastructure are expected to require approximately $100 million of investment. Summit Midstream will fund 70%, reflecting its ownership position, while an ExxonMobil subsidiary holds the remaining 30%. Gas turbine compression equipment has already been ordered, with the project targeting Q4 2028 startup, subject to approval from the Federal Energy Regulatory Commission (FERC) and other regulators.
For suppliers and oilfield service companies, the FID moves Double E from a potential project toward an identifiable capital program. Opportunities should develop around compression equipment, pipeline construction, plant interconnects, valves, automation and controls, electrical systems, measurement, integrity services, inspection and commissioning as the project advances toward construction.
Industry Impact
The expansion reinforces the strategic importance of Permian natural gas takeaway infrastructure as Delaware Basin development continues. It also supports the broader U.S. “Safe Barrel” advantage: reliable domestic oil and gas production requires sufficient gathering, processing and transportation infrastructure to move associated gas without constraining upstream activity. Additional takeaway capacity can therefore help sustain Permian development while improving connectivity between production and downstream markets.
OFS Sales Strategy
Target Summit Midstream, Double E contractors and connected Delaware Basin producers/processors early in the procurement cycle. OFS companies should map the project from the planned compressor station outward to new plant connections and related pipeline infrastructure, then identify packages aligned with their capabilities. The strongest near-term targets include compression, engineering, automation, electrical, valves, measurement and long-lead equipment, followed by construction, inspection, integrity and commissioning services as the Q4 2028 in-service date approaches.
Author: phinds