Updated
Updated · The Motley Fool · Aug 17
WhiteWater-Led JV Approves 4.5 Bcf/d Solitude Pipeline to Katy
Updated
Updated · The Motley Fool · Aug 17

WhiteWater-Led JV Approves 4.5 Bcf/d Solitude Pipeline to Katy

3 articles · Updated · The Motley Fool · Aug 17

Summary

  • WhiteWater and partners took final investment decision on the two-phase Solitude system, which will move Permian gas to Katy with 2.25 Bcf/d starting in late 2029 and another 2.25 Bcf/d in 2030.
  • Long-term firm transportation deals with investment-grade shippers underpinned the project, aimed at easing chronic Permian takeaway shortages that have left Waha gas prices volatile and at times negative.
  • WhiteWater will own 50% of the venture, Devon 25%, MPLX 10%, and Diamondback and Western Midstream 7.5% each; Western also booked firm capacity to support its customers.
  • The new route gives producers better access to Gulf Coast demand centers, including LNG export terminals, while offering MPLX and Western a lower-risk source of cash-flow growth later this decade.

Insights

Will WhiteWater’s 4.5 Bcf/d Solitude project finally end Permian gas bottlenecks, or will rising LNG demand absorb the new capacity just as quickly?
What risks could still delay or reshape the Solitude pipeline buildout, even after WhiteWater and its partners approved a final investment decision?
Why are investment-grade shippers locking in long-term capacity on two 48-inch Permian-to-Katy pipelines years before service begins in 2029?