ArcLight Capital Partners and Rattler Midstream have released a statement to announce they have entered into a 50/50 joint venture to own, operate and expand a natural gas gathering and processing system in the Midland Basin.

Named Amarillo Rattle, the new entity is owned jointly by Amarillo Midstream and an affiliate of Rattler. The joint venture now 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 scheduled to become fully operational by mid-2021. The statement added that Diamondback has contracted for a portion of the new processing plant’s capacity, “which is well-positioned for future expansion”.

The joint venture already 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.

Dan Revers, managing partner and founder of ArcLight, said: “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 Diamondback in these efforts.”

Travis Stice, CEO of Rattler’s general partner, added: “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.”

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24th February 2020