Summit Midstream Approves Double E Pipeline Expansion in Delaware Basin

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.

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.