Gas pipeline takeaway from the Permian Basin is set to rapidly expand in the years ahead, an important element for meeting robust growth in US natural gas demand. Yet this buildout misses a critical component to bring new supply to market. Summit Midstream (SMC) aims to fill this breach with a new expansion.
In the Macro Supply & Demand Report, East Daley Analytics forecasts US natural gas demand will increase by ~21 Bcf/d over the next five years, driven by LNG exports and incremental power demand from data centers. Meeting this growth will require substantial supply additions, with the Permian projected to contribute ~6.5 Bcf/d through 2030.
At first glance, takeaway capacity does not appear to be a limiting factor. We model Permian egress will expand by more than 11 Bcf/d over the same period (see figure above). However, the headline numbers mask a critical structural bottleneck: intra-basin connectivity.
Nearly all long-haul pipelines in the Permian originate at the Waha hub, while a large share of new gas processing capacity – 5 Bcf/d currently under development – is concentrated in the northern Delaware Basin. This region offers the strongest gas economics, but lacks sufficient pipeline infrastructure to move volumes to basin pooling points. East Daley estimates only ~1.5 Bcf/d of incremental intra-basin pipeline capacity is currently planned, creating a meaningful shortfall between processing growth and connectivity.
Why Double E Matters
Summit Midstream’s new Double E Pipeline expansion targets this constraint. The system is now fully subscribed at its existing 1.6 Bcf/d capacity after Summit signed new long-term agreements totaling 540 MMcf/d, with ramp-up expected between 2026 and 2029.
Summit announced a binding open season for the expansion on its 4Q25 earnings call. SMC plans to add ~800 MMcf/d through new compression, increasing capacity to over 2.4 Bcf/d by 2028. The project is pending regulatory approval and further commercial backing.
Double E’s strategic value lies in its positioning. The pipeline connects northern Delaware processing plants (30–100 miles northwest of Waha) to major takeaway corridors. It interconnects with key long-haul systems, including Gulf Coast Express, Permian Highway Pipeline, and Transwestern. It also expands optionality with planned links to Energy Transfer’s (ET) new Desert Southwest and Hugh Brinson projects, enabling bidirectional market access.
The Permian is transitioning from a takeaway-constrained basin to a connectivity-constrained basin. While downstream capacity is sufficient on paper, molecules cannot reach those pipes without adequate intra-basin infrastructure.
Double E exemplifies the next wave of midstream development — assets designed not to move gas out of basin, but to bridge the gap between processing growth and existing takeaway hubs.
Bottom Line: Future Permian gas growth is increasingly dependent on intra-basin pipeline buildout. Without it, processing expansions in the northern Delaware risk becoming stranded, regardless of how much long-haul capacity is added. – Oren Pilant Tickers: ET, SMC.
Download Part II of East Daley’s Permian Basin White Paper Series
The Permian Basin’s next big buildout is already taking shape, but this time the driver isn’t crude oil. In The Permian Basin at a Crossroads: Why This Pipeline Boom is Different, East Daley Analytics’ latest white paper reveals how gas demand from AI data centers, utilities and LNG exports is rewriting the midstream playbook in the leading US basin. Over 10 Bcf/d of new capacity and $12 billion in investments are reshaping flows, turning the Permian into a gas powerhouse even as rigs decline. Read Part II: Why This Pipeline Boom is Different
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