Maintaining minimum distance between repair and existing welds often becomes impractical due to the presence of compact layouts, original welds of branches, nozzles, etc. on offshore structural elements, pipelines, and piping. Although some international codes and standards provide criteria for maintaining a minimum distance between proximity welds, most of them lack technical justification in relation to their effect on the structural integrity of welded components. The development of residual stresses has a significant effect (i.e., a negative effect on tensile stresses and a positive effect on compressive stresses) on the integrity of the welds fabricated at proximity. Hence, it is important to investigate the residual stress distribution on welds fabricated at proximity, especially at a distance away from the weld toe. This study presents findings on the characterization of residual stresses by neutron diffraction at the proximity region between two girth welds. The two welds were fabricated at proximity, using two different welding procedure specifications and at three different distances, on a structural steel pipe, grade S355. The three different welding distances between weld toes were maintained at 5, 10, and 15 mm respectively. The neutron diffraction-based residual stress distributions were investigated at the POLDI neutron instrument at the Swiss spallation source SINQ in Switzerland. The axial, hoop, and radial components of the residual stresses were experimentally investigated between proximity welds. The findings revealed that residual axial stresses at a 5-mm proximity distance were increased beyond the yield strength of the structural steel, grade S355. The findings of this study enable practitioners to take remedial actions to minimize the residual stresses developed in girth welds fabricated at proximity. Also, the findings enable us to derive technical justification for maintaining a minimum distance and developing welding procedure for welds fabricated at proximity.