Summit Midstream Partners, LP has announced that it is holding a non-binding open season for its Double E pipeline. The project will provide firm natural gas transportation service from various receipt points in the Delaware Basin to various delivery points in and around the Waha Hub, connecting a growing associated natural gas supply basin to a liquid trading point with multiple current and planned takeaway pipelines to demand centers along the US Gulf Coast and Mexico. The target in-service date for the project is the first quarter of 2021.
This open season commenced at 9:00 a.m. CST on Monday 29 January 2018 and will end at 4:00 p.m. CST on Friday 2 March 2018.
The project will consist of approximately 120 miles of 24 - 36 in. dia. pipe with a capacity of approximately 1.0 billion ft3/d (without compression), expandable to approximately 1.4 billion ft3/d (with compression). Double E will provide natural gas transportation service from the northern Delaware Basin to the Waha Hub in northern Pecos County (Texas), servicing various receipt points in Eddy and Lea counties in New Mexico and Loving, Ward, Reeves and Pecos counties in Texas.
The project will have multiple direct downstream connections based on shipper demand and preferences. Additional receipt laterals and extensions are being contemplated as well.
A cost of service-based, daily reservation recourse rate will be available for transportation service under the project, as such rate may change from time to time. The estimated initial recourse rate will be calculated using Summit's estimated cost of the project facilities, estimates for operation and maintenance expenses based on costs for similar facilities, the billing determinants under the project and other cost factors.
Summit also may, but will not be obligated to, offer shippers a negotiated daily reservation rate for transportation service under the project.
All reservation rates will be dependent on the final project scope and facility requirements, which will be determined following the completion of this open season.
In addition to the applicable daily reservation rates, shippers may also be responsible for compressor fuel and line loss make-up retention, electric power charges, commodity charges and all applicable surcharges as approved or required by the Federal Energy Regulatory Commission for transportation service under the project, all as amended from time to time.
The primary term for firm transportation service under the project will be 10 years or longer. Summit may consider but reserves the right to not accept any requests for firm transportation service under the project with a requested primary term of less than 10 years.
Depending on the results of this open season, Summit may determine that multiple projects may be pursued instead of a single project, and Summit therefore reserves the right to modify the project contemplated herein and pursue multiple projects, or elect to do nothing.
Upon receipt of all timely submitted request forms, Summit will evaluate the total capacity requested and determine the final scope of the project or multiple projects. Summit, in its sole discretion, may: revise the anticipated scope and/or capacity of the project including, without limitation, by changing the receipt and delivery points; decide not to pursue the project or any other project; or develop alternatives to the project that suit the needs reflected in the results of this open season.
If Summit allocates the available firm transportation capacity under the project, then the capacity will be allocated first to shipper(s) with the longest requested primary contract term (and if there is a tie among shippers with the longest requested primary contract term, then capacity will be allocated first to such shippers on a pro rata basis).