SEATTLE (Oil Monster): Devon Energy Corp. has taken final investment decision (FID) on the Solitude Pipeline System, a WhiteWater-led joint venture that will build two 48-in. OD natural gas pipelines connecting the Permian basin to Katy, Tex. Devon describes Solitude as the latest in a series of steps it has taken to integrate and consolidate the infrastructure supporting its Delaware basin position.
Solitude is designed for a phased build-out of 2.25 bcfd entering service second-half 2029, followed by a similarly sized second phase in 2030 and the ability to expand further to meet shipper demand. Construction and in-service timing remain subject to customary regulatory approvals.
Devon has secured firm transportation capacity and will hold a 25% equity interest in the joint venture, alongside WhiteWater (50%), MPLX (10%), Diamondback Energy (7.5%) and Western Midstream Partners (7.5%).
Permian producers have long absorbed volatile and periodically negative pricing at the Waha hub, where takeaway capacity has repeatedly failed to keep pace with associated gas growth. Devon says the pipeline will move the majority of its Delaware gas out of Waha and into markets that will be tied to expanding LNG export and power generation.
Devon has initiated the process of securing international LNG-linked pricing, including a 100-MMcfd agreement beginning in 2027 and an additional 150 MMcfd in 2028.
“Solitude is not a standalone investment; it is the next step in an integrated model we have been building for years,” said Clay Gaspar, Devon’s president and chief executive officer. “We have taken the hardest constraints in the Delaware [b]asin: water, processing, compression, takeaway and power, and have de-risked the physical constraints turning each one into a source of value rather than a tax on our returns. The company’s integrated model continues to lower our cost of supply, driving free cash flow higher and deepening our peer-leading Delaware inventory. Our advantaged position will continue to enhance the company’s Delaware return profile and will enable Devon to achieve differentiated resource capture.”
Devon holds one of the largest operated positions in the economic core of Delaware basin and says the asset anchors more than half of its production and free cash flow. Over the past several years, Devon has systematically taken ownership or long-term contractual control of the infrastructure that position depends on for optimal and profitable development.
