September 03, 2026 – Houston -- Summit Midstream Corporation (NYSE: SMC) has reached a final investment decision on a mainline compression expansion for its Double E Pipeline, backed by a new 200 MMcf/d take-or-pay agreement with an investment-grade shipper that lifts total contracted firm capacity on the system to approximately 2.2 Bcf/d.
Open season locks in 550 MMcf/d of new commitments toward the expansion
The project will add a bi-directional mainline compressor station that increases Double E's forward haul capacity to the Waha Hub by roughly 900 MMcf/d. Summit said 550 MMcf/d of the expansion capacity is now under binding long-term contracts, with discussions ongoing to subscribe the remaining 450 MMcf/d in coming months. The joint venture has already placed a purchase order for the long-lead gas turbine compression units to secure manufacturing slots ahead of a targeted fourth-quarter 2028 in-service date, though the project still requires FERC and other regulatory approvals.
Expansion carries a $100 million price tag net to Summit's 70% stake
The compression station, plant connections and related infrastructure are expected to cost approximately $100 million net to Summit's 70% interest in Double E, which is co-owned by ExxonMobil (NYSE: XOM) at 30%. Summit Permian Transmission converted a previously uncommitted $50 million accordion under its $440 million senior secured term facility, maturing March 2031, into committed financing. Combined with a $50 million committed delayed draw term facility established at closing in March 2026, total committed financing capacity now stands at $100 million, fully funding Summit's expected capital contributions to Double E. The facility remains non-recourse to SMC.
Permian Segment EBITDA projected to nearly triple by 2030
CEO Heath Deneke said once the expansion is fully subscribed, Summit expects Permian Segment Adjusted EBITDA to grow from approximately $37 million in 2026 to over $100 million by 2030. He pointed to emerging demand-pull opportunities from data center development in Texas and New Mexico, along with connectivity to additional egress pipelines seeking greater access to Permian gas supply, as drivers for a further doubling of the business outlook.
Double E's contracted base now spans a diversified group of investment-grade shippers
Double E is a 135-mile FERC-regulated interstate pipeline that began operations in November 2021, transporting gas from receipt points in the Delaware Basin to delivery points around the Waha Hub in Texas. Summit Midstream Permian II, LLC operates the system.