Summit Midstream's Eddy County Lateral on Track for Q1 2027 Service Start
According to Permian Basin Oil and Gas Magazine, Houston-based Summit Midstream announced May 11 that a lateral connecting a processing plant in Eddy County, N.M., is expected to be in service in the first quarter of 2027.
New Agreements Push Double E Volumes to 1.755 Bcfd
Summit Midstream also disclosed that a new 10-year agreement for 100 million cubic feet per day of capacity was executed before the end of the first quarter of 2026. That deal adds to previously announced contracts on the Double E pipeline.
“This agreement along with those previously announced brings total contracted volume on Double E pipeline to 1.755 Bcfd,” Summit said in its May 11 statement, as reported by Permian Basin Oil and Gas Magazine.
Heath Deneke, president, CEO and chairman of Summit Midstream, indicated the company is eyeing further expansion. “We remain encouraged by the continued commercial progress on the pipeline,” Deneke said. “We are evaluating significant shipper interest in the recently launched open season and remain optimistic there will be sufficient commercial support to make a final investment decision on the 800 million cfd compression expansion project.”
That potential compression expansion, if it clears a final investment decision, would represent a significant capacity addition to a pipeline corridor serving one of the most active producing regions in the Delaware Basin.
What It Means for Subcontractors
- New pipeline construction work is on the horizon. The Eddy County lateral is moving toward a Q1 2027 in-service date, meaning pipeline construction, coating, inspection, and right-of-way contractors in southeastern New Mexico should be monitoring bid opportunities as Summit advances the project.
- The compression expansion is a larger prize. An 800 million cfd compression expansion project is under evaluation. If Summit reaches a positive final investment decision, compression installation contractors, civil crews, and equipment suppliers in the Delaware Basin corridor could see significant work packages emerge.
- Long-term agreements signal sustained throughput. A 10-year capacity deal at 100 million cfd means producers are committing to the region for the long run. That producer confidence supports ongoing wellsite construction, gathering tie-ins, and facility work for subcontractors operating in Eddy County and surrounding areas.
- Watch the open season results. Summit noted significant shipper interest in its recently launched open season. How that resolves will signal the pace and scale of future infrastructure buildout, and subcontractors should track that timeline when planning crew and equipment availability for 2027 and beyond.
