U.S. 4.5 Bcf/d Pipeline Reaches FID

en.Wedoany.com Reported - On August 17, the Solitude Pipeline system, led by WhiteWater, reached a final investment decision. The project plans to build two 48-inch diameter natural gas pipelines to transport natural gas from the Permian Basin in the United States to the Katy area of Texas, with a designed delivery capacity of approximately 4.5 billion cubic feet per day once fully operational.

The Solitude Pipeline adopts a phased construction and commissioning approach. The first phase is planned to deliver approximately 2.25 billion cubic feet per day by late 2029, with the second phase expected to add an equivalent capacity in 2030. The pipeline system also reserves conditions for further expansion, and the commissioning timeline for each phase may be advanced or delayed based on market demand.

The project has secured multiple long-term firm natural gas transportation agreements, with shippers primarily consisting of investment-grade companies. These agreements provide the commercial foundation for the joint venture partners to reach the final investment decision. Once completed, the pipeline will transport incremental natural gas supply from the Permian Basin and connect to the natural gas transportation network serving the U.S. Gulf Coast market.

The Solitude joint venture is owned 50% by WhiteWater, 25% by Devon Energy, 10% by MPLX, and 7.5% each by Diamondback Energy and Western Midstream Partners. I Squared Capital and FIC Partners Management are participating in the project investment through their partnership with WhiteWater.

The project is scheduled to begin operations in the second half of 2029, with first-phase capacity expected to be in service by the end of that year. This timeline remains subject to customary regulatory and other approval processes, and subsequent construction will be implemented in phases in accordance with natural gas transportation agreements and market demand.