Permian gets new gas pipeline capacity
Summit Midstream Partners announced November 18 that a 217-km shale natural gas pipeline in the US south has commenced service.
Summit’s Double E pipeline, running from the shale basin in southeast New Mexico to the Waha hub in Texas, started up with a design capacity of 1.35bn ft3/d.
Summit CEO Heath Deneke said the line fills a gap in a capacity-strained region of New Mexico where drilling rigs are up by nearly 50% from third quarter 2020 levels. The pipeline, meanwhile, was completed on time and under budget.
New Mexico hosts part of the Permian shale basin. The acting head of the Energy Information Administration (EIA) testified at a Senate hearing earlier this week that most of the natural gas production growth expected next year will come from the Permian basin, as well as the Haynesville play situated mostly in Louisiana.
The latest drilling productivity report from the EIA forecasts Permian natural gas production at about 19.3bn ft3/d for November. That makes it the second-largest natural gas basin in the Lower 48 states behind the Appalachia shale.