Summit Midstream decides to proceed with Double E Pipeline Project
Summit Midstream announced a final investment decision to proceed with the Double E Pipeline Project, having secured sufficient commitments pursuant to binding precedent agreements for long-term, firm transportation service and having executed definitive joint venture agreements with an affiliate of Double E's Foundation Shipper. Double E has secured 10-year take-or-pay volume commitments for a substantial majority of its initial throughput capacity of 1.35 Bcf/d. Throughput capacity on Double E could be expanded at a later date to 1.85 Bcf/d. Commercial discussions with additional potential shippers are ongoing to subscribe the limited remaining capacity prior to commissioning. Double E will provide natural gas transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas. SMLP will own a majority of the Project, will lead the development, permitting and construction of the Project, and will operate Double E upon commissioning. SMLP estimates that its share of the capital expenditures required to develop Double E will total approximately $350M, and that more than 90% of those capital expenditures will be incurred in 2020 and 2021. SMLP intends to fund its share of the capital expenditures for Double E with a combination of internally generated cash flow and proceeds from potential non-core asset divestitures. Double E estimates a 3Q21 in-service date, assuming timely receipt of the requisite regulatory approvals.