ArcLight Capital Partners and Rattler Midstream have entered into a 50/50 joint venture to own, operate and expand a natural gas gathering and processing system in the Midland Basin.
The new entity, Amarillo Rattle, is owned jointly by Amarillo Midstream and an affiliate of Rattler. The joint venture currently owns and operates the Yellow Rose gas gathering and processing system with a total processing capacity of 40,000 Mcf/d and more than 84 miles of gathering and regional transportation pipelines in Dawson, Martin, and Andrews Counties, Texas.
The joint venture plans to construct and operate a new 60,000 Mcf/d natural gas cryogenic processing plant in Martin County, Texas, as well as incremental gas gathering and regional transportation pipelines.
The new processing plant is due to start full commercial operations in mid-2021. Diamondback has contracted for a portion of the new processing plant's capacity, which is well-positioned for future expansion.
Dan Revers, managing partner and founder of ArcLight, says: 'We are very pleased to partner with Rattler on this exciting new natural gas focused midstream JV in the Midstream Basin. Capturing and efficiently processing natural gas in the Permian Basin is a key part of the US energy transition and we look forward to supporting Diamonback in these efforts.
Travis Stice, CEO of Rattler's general partner, adds: 'Enhanced planning and coordination between our gas gathering and processing partners in this venture, and across all of our operations, increases the capital efficiency and reliability of the integrated systems and minimises increasingly undesirable outcomes such as flaring.'