Summit Midstream Partners, LP Announces FERC Approval of Double E Pipeline Project

Rhea-AI Summary

Summit Midstream Partners, LP (SMLP) announced on October 15, 2020, that its joint venture, Double E Pipeline, LLC, received FERC approval to construct the Double E Pipeline Project. SMLP holds a 70% equity interest in the project, which will transport up to 1.35 million dekatherms of natural gas from southeast New Mexico and west Texas to delivery points in Texas. The project is tracking approximately 15% below its original budget. Final financing arrangements are expected to coincide with the upcoming FERC notice to proceed within 90 days.

Positive

• FERC approval for the Double E Pipeline is a significant milestone for SMLP.
• The project is currently 15% under the original budget established in June 2019.
• Final financing for SMLP's remaining capital obligations is underway.

Negative

• None.

HOUSTON, Oct. 16, 2020 /PRNewswire/ -- Summit Midstream Partners, LP (NYSE: SMLP) announced that on October 15, 2020, Double E Pipeline, LLC ("Double E"), a joint venture in which SMLP owns a 70% equity interest and serves as operator, received Federal Energy Regulatory Commission ("FERC") approval of its application to construct and operate the Double E Pipeline Project, pursuant to Section 7(c) of the Natural Gas Act.  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.  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.  This notice to proceed is expected within the next 90 days.

Heath Deneke, President, Chief Executive Officer and Chairman, commented, "I'm pleased that Double E has received FERC approval, which is an important milestone in the development of the Double E Pipeline Project.  SMLP continues to focus on developing this world-class project on schedule and under budget in a safe and efficient manner.  Due to the efforts of the hard-working men and women developing this project to lock-in costs and capture value, the total cost to complete Double E is now tracking approximately 15% below original 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.  I look forward to providing more commentary on Double E, and the related financing, during our upcoming third quarter earnings call."

About Summit Midstream Partners, LP
SMLP is a value-driven limited partnership focused on developing, owning and operating midstream energy infrastructure assets that are strategically located in the core producing areas of unconventional resource basins, primarily shale formations, in the continental United States.  SMLP provides natural gas, crude oil and produced water gathering, processing and transportation services pursuant to primarily long-term, fee-based agreements with customers and counterparties in six unconventional resource basins: (i) the Appalachian Basin, which includes the Utica and Marcellus shale formations in Ohio and West Virginia; (ii) the Williston Basin, which includes the Bakken and Three Forks shale formations in North Dakota; (iii) the Denver-Julesburg Basin, which includes the Niobrara and Codell shale formations in Colorado and Wyoming; (iv) the Permian Basin, which includes the Bone Spring and Wolfcamp formations in New Mexico; (v) the Fort Worth Basin, which includes the Barnett Shale formation in Texas; and (vi) the Piceance Basin, which includes the Mesaverde formation as well as the Mancos and Niobrara shale formations in Colorado.  SMLP has an equity investment in Double E Pipeline, LLC, which is developing natural gas transmission infrastructure that will provide transportation service from multiple receipt points in the Delaware Basin to various delivery points in and around the Waha Hub in Texas.  SMLP also has an equity investment in Ohio Gathering, which operates extensive natural gas gathering and condensate stabilization infrastructure in the Utica Shale in Ohio.  SMLP is headquartered in Houston, Texas.

 

 

View original content to download multimedia:http://www.prnewswire.com/news-releases/summit-midstream-partners-lp-announces-ferc-approval-of-double-e-pipeline-project-301153822.html

SOURCE Summit Midstream Partners, LP

FAQ

What is the significance of the FERC approval received by SMLP?

The FERC approval allows the Double E Pipeline Project to proceed with construction, marking a key milestone for Summit Midstream Partners.

When was the FERC approval announced for the Double E Pipeline?

The FERC approval was announced on October 15, 2020.

What is the expected capacity of the Double E Pipeline?

The Double E Pipeline is expected to provide up to 1.35 million dekatherms of firm transportation service.

How much of the Double E Pipeline does SMLP own?

Summit Midstream Partners owns a 70% equity interest in the Double E Pipeline.

When should SMLP expect to receive FERC's notice to proceed with construction?

The notice to proceed is expected within the next 90 days following the FERC approval.