Open season begins for natural gas pipeline in Delaware Basin

Texas-based Summit Midstream Partners is holding a binding open season for its Double E natural gas pipeline in the Permian Basin in West Texas and New Mexico, Kallanish Energy reports.

The open season on 500 million cubic feet of available capacity will close on Sept. 14. Total capacity is in excess of 1 billion cubic feet per day.

Last week, Summit Midstream announced a deal with XTO Energy, an ExxonMobil subsidiary, to become a foundation shipper on the pipeline project.

The pipeline will connect the northern Delaware Basin in West Texas and New Mexico to the Waha Hub in West Texas. The pipeline is expected to begin service in 2021.

The project will stretch 134 miles with 30- to 42-inch pipe.

It will originate in Eddy County, New Mexico, and serves Lera County in New Mexico and Loving, Reeves, Ward and Pecos counties in Texas.

Summit Midstream will handle the development, permitting and construction of the pipeline and will operate the pipeline upon commissioning.

Summit Midstream and ExxonMobil have also executed an equity option agreement that provides ExxonMobil or an affiliate the right to become an equity partner in Double E.


Source: Kallanish Energy