WhiteWater, along with its joint venture (JV) partners Devon Energy, Diamondback Energy, Western Midstream Partners (WES) and MPLX, has reached a final investment decision (FID) to construct the Solitude Pipeline System in the US. The pipeline system will feature two 48in natural gas pipelines designed to transport supplies from the Permian Basin to a hub in Katy, Texas, near the Gulf coast. The project will be managed by the Solitude Pipeline System JV and is supported by long-term transportation agreements with mainly investment-grade shippers.
Commissioning of the Solitude Pipeline System is dependent on receiving customary regulatory and other approvals, with service targeted to commence in the second half of 2029. The project's initial phase will provide a capacity of approximately 2.25 billion cubic feet per day (bcf/d) in late 2029, with an additional 2.25bcf/d expected in 2030. The flexible, phased approach allows for the adjustment of commissioning timelines to meet changing market conditions and the potential for further capacity increases based on shipper demand.
WES president and CEO Oscar Brown said: "We are excited to partner with WhiteWater and the other owners of Solitude to build incremental natural-gas takeaway that supports continued Permian Basin growth and expanding Gulf Coast demand, including LNG [liquefied natural gas] exports. "Unlike our other long-haul joint ventures, WES has taken firm capacity on the Solitude pipelines, enabling enhanced flow assurance for our customers. "We firmly believe that as the basin continues to be developed and gas-to-oil ratios rise, residue takeaway capacity will be critical to allow Permian Basin producers to maximise the value of their production, and this investment allows us to better serve current customers and compete for new volumes, all while meeting our required return thresholds." WhiteWater holds a 50% stake in the JV, with Devon Energy owning 25%, MPLX 10%, and both Diamondback Energy and WES holding 7.5% each.
I Squared Capital and FIC Partners Management are also noted as partners in WhiteWater's share of the Solitude investment. WES confirmed that it has taken a firm transportation position on the lines to provide additional takeaway for its Delaware Basin customers. The project aims to support ongoing growth in the Permian Basin as well as increasing natural gas consumption along the Gulf Coast.
"WhiteWater and partners approve FID for Solitude Pipeline System" was originally created and published by Offshore Technology, a GlobalData owned brand.
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