Summit (SMLP) Declares Double-E Project Approval by FERC
Summit Midstream Partners LP SMLP announced the Federal Energy Regulatory Commission’s ("FERC") approval of the Double E Pipeline, LLC ("Double E") project in the Permian Basin, a joint venture in which the partnership owns a 70% stake and will be the operator. The remaining 30% interest is held by ExxonMobil XOM.
Double E, currently under construction, is a 135.2-mile interstate natural gas pipeline. The project’s objective is to provide up to 1,350 million standard cubic feet per day (“MMscfd”) of firm transport services from various receipt points positioned throughout the Delaware Basin in New Mexico and Texas to delivery points near Waha in Reeves and Pecos County, TX.
Summit expects to receive a notice from FERC to carry forward the construction project after the remaining obligations, namely accomplishing a right-of-way permit from the Bureau of Land Management and the implementation of plans with the Regulatory Commission, were satisfied. This notice to step forward is expected within the next three months.
Per Heath Deneke, president/CEO at Summit Midstream Partners, the firm maintains its purpose of developing this project on the scheduled time in a cost-effective and efficient manner. The project’s total expenses are expected to scale down from the original budget by 15%. On its part, the partnership’s aim to reduce emissions and other related impacts from the clean-burning natural gas will trigger local economics and generate tax revenues to the areas along the project route.
Summit is a natural gas-focused energy infrastructure provider in some of the key shale regions in the United States. The firm recently simplified its corporate structure by acquiring the owner of its general partner along the lines of Antero Midstream AM and Equitrans Midstream ETRN. The transaction is aimed at better corporate governance and lower cost of capital in a softer market.
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