XOM - Summit Midstream launches service on Double E Pipeline

Summit Midstream Partners (SMLP +2.8%) says it has started operations at the 135-mile Double E Pipeline, which provides natural gas transportation services from the Permian Basin to downstream pipeline interconnections in the Waha Hub region. The new pipeline brings an incremental 1.35B cf/day in flow capacity to the core of the Delaware Basin, significantly expanding downstream market access for Permian producers and possibly fueling new production growth in the area. The project already has most of its throughput capacity underpinned by 10-year take-or-pay volume commitments. Double E is 70% owned and operated by Summit Midstream, with Exxon Mobil (NYSE:XOM) subsidiary XTO Energy holding 30%. The Double E startup comes just as oil and gas prices in west Texas are surging; a new Energy Information Administration report forecasts Permian Basin production hitting a record next month.

For further details see:

Summit Midstream launches service on Double E Pipeline