WhiteWater, Devon Energy, MPLX, Diamondback Energy and Western Midstream Partners have made a final investment decision on the Solitude Pipeline System, which will comprise two 48-inch natural gas pipelines from the Permian Basin to Katy, Texas. The project is backed by multiyear capacity commitments from customers that are largely investment-grade. WhiteWater owns 50% of the venture, Devon 25%, MPLX 10%, and Diamondback and Western Midstream 7.5% each.
The system will be developed in stages, with approximately 2.25 billion cubic feet per day of initial capacity planned for late 2029 and another 2.25 billion cubic feet per day in 2030. That would bring total planned capacity to about 4.5 billion cubic feet per day, with room for later additions based on demand. Initial service is targeted for the second half of 2029, pending customary regulatory and other approvals.
Solitude would provide another long-distance outlet for rising associated natural gas output from the Permian and connect West Texas supplies with the Katy hub and broader Gulf Coast markets. For investors, the contracted customer base supports the project’s economics, while the additional takeaway capacity is relevant to producers and midstream operators preparing for continued regional output and growing Gulf Coast gas demand.
Source: Seeking Alpha
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