Western Midstream secures a 7.5% stake in the Solitude Pipeline System joint venture to build two 48‑inch gas pipelines from the Permian Basin to Katy, Texas
Executive summary: Western Midstream Partners LP disclosed a 7.5% equity interest in the Solitude Pipeline System joint venture, which has approved the construction of two 48‑inch natural gas pipelines from the Permian Basin to Katy, Texas. The pipelines will increase Permian gas take‑away capacity to the Gulf Coast, affecting regional supply balances and potentially impacting gas pricing and infrastructure investment decisions.
Who is involved: Western Midstream Partners LP, WhiteWater, Devon Energy Corporation, MPLX LP, Diamondback Energy Inc., and other partners in the Solitude Pipeline System joint venture.
Likely next: The joint venture will move into permitting, procurement and construction phases, with the goal of bringing the pipelines into service in the mid‑2020s pending regulatory approvals.
Western Midstream Partners LP announced its participation in the Solitude Pipeline System, a joint venture that has reached a positive final investment decision to construct two large‑diameter natural gas pipelines linking the Permian Basin to the Gulf Coast. The move expands Western Midstream’s midstream footprint and adds take‑away capacity for Permian gas producers. The project is positioned to support regional gas supply dynamics and could influence Gulf Coast transportation infrastructure investment.
Timeline
- — Western Midstream Announces Participation in the Solitude Pipeline System (PR Newswire)
- — SOLITUDE PIPELINE SYSTEM REACHES FINAL INVESTMENT DECISION TO TRANSPORT GAS FROM THE PERMIAN BASIN TO THE GULF COAST (PR Newswire)
Analysis — what this means
Sectors affected
- Natural gas pipeline infrastructure
- Permian Basin gas production
- Gulf Coast gas markets