Right on time and right on the money, the Double E Pipeline is now open for business to bring added transportation capacity to the Permian’s Delaware where 80 rigs currently operate. Reese Energy Consulting today is following the latest news from Houston-based Summit Midstream, which will operate the 135-mile natural gas pipeline designed to flow 1.35 BCFD from southeast N.M., and west Texas to multiple delivery points in and around the Waha Hub. The $400 million Double E was developed under a 70:30 joint venture between Summit and Exxon’s XTO of which XTO will become a foundation shipper with 500 MMCFD of capacity for 10 years. Summit in January broke ground on the project after announcing final FERC approval that sent its stock price into orbit at a whopping 51.7% in pre-market trading before settling at a still impressive 29% for the day. Formed in 2009, the company operates extensive natural gas, crude oil, and produced water midstream infrastructure in the Marcellus/Utica, Barnett, Permian, DJ, and Piceance basins.
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Headquartered in Houston, Texas, Summit Midstream Partners, LP (NYSE: SMLP) is a value-driven master limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in unconventional resource basins, primarily shale formations, in the continental United States.