Infrastructure company WhiteWater and its joint venture partners Devon Energy, MPLX, Diamondback Energy and Western Midstream Partners said on Monday they had reached a final investment decision (FID) to build two natural gas pipelines from the Permian Basin to Katy, Texas.
The Permian Basin, the largest oil-producing region in the U.S., has seen steady growth in associated natural gas production in recent years, spurring investment in new pipeline infrastructure to move gas to key demand centers along the U.S. Gulf Coast.
* The companies said the joint venture, known as the Solitude Pipeline System, is backed by substantial long-term firm transportation agreements with investment-grade shippers.
* The pipeline system will be developed in phases, with initial capacity of about 2.25 billion cubic feet per day (Bcf/d) expected in late 2029, the companies said.
* A second phase is due in 2030 and would add another 2.25 Bcf/d of capacity, bringing total capacity to about 4.5 Bcf/d, they added.
* The companies said the system’s design would allow further capacity expansions to accommodate additional shipper demand.
* WhiteWater owns 50% of the joint venture, while Devon Energy holds 25%, MPLX holds 10%, and Diamondback Energy and Western Midstream Partners each hold 7.5%.
* Solitude is expected to enter service in the second half of 2029, subject to customary regulatory and other approvals.
(Reporting by Varun Sahay in Bengaluru; Editing by Tasim Zahid)