ArcLight, Rattler Midstream form midstream JV Amarillo Rattler
ArcLight Fund V portfolio company Amarillo Midstream and an affiliate of Rattler Midstream have agreed to form a 50:50 joint venture (JV) called Amarillo Rattler to own and operating natural gas gathering and processing assets in the Midland Basin of the Permian Basin in the US.
While ArcLight Fund V is managed by ArcLight Capital Partners, Rattler Midstream is a subsidiary of Diamondback Energy.
The newly created joint venture owns the Yellow Rose gas gathering and processing system in Texas, which has an estimated total processing capacity of 40,000 Mcf/d. The midstream asset is made up of more than 84 miles of gathering and regional transportation pipelines laid across Dawson, Martin, and Andrews Counties in Texas.
Dan Revers – Managing Partner and Founder of ArcLight Capital Partners said: “We are very pleased to partner with Rattler on this exciting new natural gas focused midstream JV in the Midland Basin.
“Capturing and efficiently processing natural gas in the Permian Basin is a key part of the U.S. energy transition and we look forward to supporting Diamondback in these efforts. We look forward to growing the joint venture and our relationships with Rattler and Diamondback in the years to come.”
Amarillo Rattler also plans to build and operate a new 60,000 Mcf/d natural gas cryogenic processing plant in Martin County in Texas, and also incremental gas gathering and regional transportation pipelines.
The new joint venture between ArcLight Capital Partners and Rattler Midstream expects the new processing plant to begin full commercial operations in mid-2021.
Diamondback Energy has contracted for a portion of the new gas processing plant’s capacity, which will also see future expansion. The plant’s expansion will be in accordance with a gas gathering and processing agreement signed with the joint venture in exchange for the former’s dedication of certain leasehold interests to the agreement.
ArcLight, Rattler Midstream form midstream joint venture Amarillo Rattler. Photo courtesy of Free-Photos from Pixabay.
Travis Stice – CEO of Rattler Midstream’s general partner said: “We are excited to partner with ArcLight and Amarillo Midstream in expanding this gas gathering and processing system in one of our core growth areas for years to come.
“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 minimizes increasingly undesirable outcomes such as flaring.
“Moreover, this joint venture demonstrates Rattler’s ability to leverage the Diamondback relationship to invest in attractive projects that ensure its high operational and environmental standards are met downstream of the wellhead.”