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 long-term firm transportation agreement with an investment-grade shipper.
Open season secures 550 MMcf/d of new take-or-pay commitments
Double E Pipeline, LLC concluded an open season that generated 550 MMcf/d of binding long-term commitments, pushing total contracted firm capacity on the system to approximately 2.2 Bcf/d. The expansion will add a bi-directional mainline compressor station that increases forward haul capacity to the Waha Hub by roughly 900 MMcf/d, with an in-service target of the fourth quarter of 2028. Double E has already placed a purchase order for the long-lead gas turbine compression units to lock in manufacturing slots, though the project still requires FERC and other regulatory approvals.
Summit expects to spend $100 million net to fund its 70% stake
The compression station, new plant connections and related infrastructure carry an estimated cost of $100 million net to Summit's 70% interest in the joint venture with ExxonMobil (NYSE: XOM), which holds the remaining 30%. Summit Permian Transmission converted its previously uncommitted $50 million accordion into committed financing, bringing total committed capacity to $100 million and fully funding Summit's expected contributions to the project. The facility, part of a $440 million senior secured term loan maturing in March 2031, remains non-recourse to SMC.
CEO projects Permian segment EBITDA to nearly triple by 2030
CEO Heath Deneke said the company continues to negotiate with multiple shippers for the remaining 450 MMcf/d of incremental forward haul capacity from the expansion. He stated that if the project reaches full subscription, Summit's Permian Segment Adjusted EBITDA is expected to grow from approximately $37 million in 2026 to over $100 million by 2030.
Data center demand in Texas and New Mexico opens new growth phase
Beyond filling the compression expansion, Summit is targeting demand from data center development in Texas and New Mexico, along with additional egress pipelines seeking greater access to Permian gas supply. The company cited its connectivity to multiple gas processing facilities in the Delaware Basin and the Waha Hub as a competitive advantage for capturing this demand. Double E is a 135-mile FERC-regulated interstate pipeline that began operations in November 2021, transporting gas from the Delaware Basin to delivery points near Waha.