Western Midstream Announces Participation in the Solitude Pipeline System
Rhea-AI Summary
Western Midstream (NYSE: WES) has acquired a 7.5% equity interest in the Solitude Pipeline System joint venture, operated by WhiteWater, which has reached a positive Final Investment Decision to build two 48-inch natural gas pipelines from the Permian Basin to Katy, Texas.
The system targets approximately 2.25 Bcf/d of capacity in late 2029 and an additional 2.25 Bcf/d in 2030, with further expansion potential. According to Western Midstream, Solitude has secured substantial long-term firm transportation agreements with predominantly investment-grade shippers, and WES has taken firm capacity on the pipelines. The project is expected to enter service in the second half of 2029, subject to customary regulatory and other approvals.
Positive
- 7.5% equity interest in Solitude Pipeline System joint venture
- Positive FID to construct two 48-inch Permian-to-Katy gas pipelines
- Initial 2.25 Bcf/d capacity in late 2029 plus 2.25 Bcf/d in 2030
- Substantial long-term firm transportation agreements with mainly investment-grade shippers
- WES has taken firm transportation capacity, enhancing residue takeaway for Delaware Basin customers
Negative
- Project expected to enter service in second half of 2029, creating a long lead time before operations
- Solitude’s in-service timing is subject to customary regulatory and other approvals
News Explained
Solitude has reached a Final Investment Decision, but commissioning timing remains flexible: initial capacity is expected in
AI-generated analysis. How Rhea-AI works. Not financial advice.
- WES holds a
7.5% equity interest in the Solitude Pipeline System joint venture which has reached a positive Final Investment Decision to construct two 48-inch natural gas pipelines running from the Permian Basin toKaty, Texas . - Solitude will deliver scalable, long-haul natural gas transportation, with initial capacity of approximately 2.25 Bcf/d expected in late 2029 and an additional 2.25 Bcf/d in 2030 with the ability to increase capacity thereafter to accommodate shipper demand.
- WES has taken firm transportation capacity on the pipelines, providing incremental residue takeaway and enhanced flow assurance for its
Delaware Basin customers.
The joint venture's pipeline system will feature a flexible, phased design that provides initial capacity of approximately 2.25 Bcf/d in late 2029, and an additional 2.25 Bcf/d in 2030, with the ability to increase capacity thereafter to accommodate shipper demand. Capacity commissioning can be accelerated or deferred to align with evolving market dynamics. Solitude is expected to enter service in the second half of 2029, subject to receipt of customary regulatory and other approvals.
"We are excited to partner with WhiteWater and the other owners of Solitude to build incremental natural-gas takeaway that supports continued Permian Basin growth and expanding Gulf Coast demand, including LNG exports," said Oscar K. Brown, President and Chief Executive Officer of WES. "Unlike our other long-haul joint ventures, WES has taken firm capacity on the Solitude pipelines, enabling enhanced flow assurance for our customers. We firmly believe that as the basin continues to be developed and gas-to-oil ratios rise, residue takeaway capacity will be critical to allow Permian Basin producers to maximize the value of their production, and this investment allows us to better serve current customers and compete for new volumes, all while meeting our required return thresholds."
ABOUT WESTERN MIDSTREAM
Western Midstream Partners, LP ("WES") is a master limited partnership formed to develop, acquire, own, and operate midstream assets. With midstream assets located in
For more information about WES, please visit www.westernmidstream.com.
ABOUT WHITEWATER
WhiteWater is an Austin, Texas based infrastructure company and operator of multiple gas transmission assets. For more information about WhiteWater, visit www.wwdev.com.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements. WES's management believes that its expectations are based on reasonable assumptions. No assurance, however, can be given that such expectations will prove correct. A number of factors could cause actual results to differ materially from the projections, anticipated results, or other expectations expressed in this news release. These factors include our ability to close and realize the expected benefits from the Brazos acquisition; meet financial guidance or distribution expectations; our ability to safely and efficiently operate WES's assets and integrate the Brazos assets into our portfolio; the supply of, demand for, and price of oil, natural gas, NGLs, and related products or services; our ability to meet projected in-service dates for capital-growth projects; construction costs or capital expenditures exceeding estimated or budgeted costs or expenditures; and the other factors described in the "Risk Factors" section of WES's most-recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission and other public filings and press releases. WES undertakes no obligation to publicly update or revise any forward-looking statements.
WESTERN MIDSTREAM CONTACTS
Daniel Jenkins
Director, Investor Relations
Investors@westernmidstream.com
866.512.3523
Rhianna Disch
Manager, Investor Relations
Investors@westernmidstream.com
866.512.3523
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SOURCE Western Midstream Partners, LP