Double E is a 217.5km long natural gas pipeline to be laid between New Mexico and Texas
The pipeline is slated to be commissioned in Q4 2021. (Credit: Johannes Rupf from Pixabay)
Summit Midstream Partners (SMLP) announced that the Double E Pipeline Project, a natural gas pipeline in the US, has secured $175m of funding commitments for its development.
The 217.5km long pipeline will supply up to 1,350 million standard cubic feet per day (MMscfd) of natural gas from the northern Delaware Basin in New Mexico to Waha in Texas.
The pipeline is slated to be commissioned in the fourth quarter of 2021.
The funding commitments to be provided to Summit Permian Transmission’s fully-owned indirect subsidiary Summit Permian Transmission have been secured from three commercial banks.
Included in the commitments are a delayed draw term loan facility of $160m and a working capital facility of $15m.
Summit Midstream Partners said that the credit facilities are non-recourse to the company and will mature seven years from the date of initial borrowing.
Summit Midstream Partners president, CEO, and chairman Heath Deneke said: “I am pleased that we have secured financing commitments for substantially all of Summit’s expected remaining capital obligations for the construction of Double E.
“I would like to thank our bank group for their support of Double E and believe this is a testament to the quality of this world class project.”
The company had taken a final investment decision (FID) on the pipeline project in June 2019.
Earlier this month, Summit Midstream Partners secured the notice to proceed for the project from the Federal Energy Regulatory Commission (FERC) paving the way for its construction.
The midstream firm is partnered by ExxonMobil Permian Double E Pipeline in the pipeline project with a 30% stake.
Summit Midstream Partners previously said that its share of costs to develop the gas pipeline is nearly $350m.