FERC Approves Summit Midstream Double E Pipeline

(P&GJ) — Summit Midstream has received FERC approval to construct and operate the Double E Pipeline. 

Double E is a new interstate natural gas pipeline that is currently under development and, upon completion, will provide up to 1.35 million dekatherms of firm transportation service from the Delaware Basin in southeast New Mexico and west Texas to delivery points near Waha in Reeves and Pecos Counties, Texas.

SMLP owns a 70% equity interest in the pipeline and will serve as operator.

Upon fulfilling certain remaining requirements, including finalizing a right-of-way grant from the Bureau of Land Management and filing an implementation plan with the FERC, Double E expects to receive FERC's notice to proceed with construction within the next 90 days.

Heath Deneke, President, Chief Executive Officer and Chairman of SLMP said the project is tracking 15% below the budget established at FID in June 2019.

“We are in the process of finalizing third-party financing for substantially all of SMLP's remaining Double E capital obligations and we expect to secure financing concurrently with receipt of FERC's notice to proceed with construction,” he said.

Denek also said further details would be provided on the company’s third quarter conference call.

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