New Pipeline Megaproject Could Transform US Gas Markets

Devon Energy Corp. (Devon) has announced a positive final investment decision (FID) on the Solitude Pipeline System (Solitude), a project that will construct two 48-inch (121-cm) diameter natural gas pipelines connecting the Permian Basin to Katy, Texas. Solitude is the latest in a deliberate series of steps Devon has taken to integrate and consolidate the infrastructure supporting its Delaware Basin position.

Solitude is designed for a phased build-out of approximately 2.25 bcf/d (63.7 x 106 m3/d) entering service in the second half of 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. Firm, long-haul capacity to the Gulf Coast changes that equation: it moves the majority of Devon’s Delaware gas out of Waha and into markets that will be tied to expanding liquefied natural gas (LNG) export and power generation, where North American liquefaction capacity is expected to more than double by the end of the decade.

Devon has already initiated the process of securing international LNG-linked pricing, including a 100 MMcf/d (2.8 x 106 m3/d) agreement beginning in 2027 and an additional 150 MMcf/d (4.2 x 106 m3/d) in 2028. Solitude gives Devon the scale and duration to access this growing LNG demand.

“Solitude is not a standalone investment; it is the next step in an integrated model we have been building for years,” said Clay Gaspar, president and chief executive officer of Devon. “We have taken the hardest constraints in the Delaware Basin: 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.”

Headquartered in Houston, Devon Energy is a US oil and gas producer in with a diversified multi-basin portfolio. The company’s 2025 daily production was approximately 548,000 barrels of oil, 348,000 barrels of natural gas liquids, and about 4.3 bcf (121.7 x 106 m3) of natural gas.

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