New Permian Basin pipeline approved by FERC

 

The Federal Energy Regulatory Commission has approved construction and operation of the Double E natural gas pipeline in the Permian Basin of West Texas.

The 134-mile pipeline will run from the Delaware Basin of West Texas and New Mexico to near Waha in West Texas where it will connect to other pipelines according to Kallanish Energy.

It will run through two counties in southeast New Mexico and four counties in West Texas.

It is being designed to move up to 1.35 dekatherms per day of natural gas from the western part of the Permian Basin.

It is being developed by Summit Midstream Partners, which owns a 70% equity interest in the pipeline.

The other 30% is owned by ExxonMobil Permian Double E Pipeline LLC.

Summit Midstream Partners said its share in building the pipeline is about $350 million.

The company expects to get FERC approval to begin construction in the next 90 days after completing a right-of-way grant from the Bureau of Land Management.

The pipeline is expected to begin service in third quarter 2021.

Subsidiary Double E Pipeline LLC is directing the project.

The FERC approval was β€œan important milestone,” said Heth Deneke, president, CEO and chairman of Summit Midstream Partners, in a statement.

The pipeline will range from 30 to 42 inches in diameter.

Capacity could be expanded to 1.85 dekatherms per day in the future by adding compression, the company said.

Source: Kallanish Energy