ArcLight and Rattler Midstream Partner on Permian JV
ArcLight Capital Partners and Rattler Midstream, a subsidiary of Diamondback Energy, shared that Amarillo Midstream, an ArcLight Fund V portfolio company and an affiliate of Rattler, have entered into a 50/50 joint venture to own, operate and expand a gas gathering and processing system in the Midland Basin.
The new entity, Amarillo Rattler, is owned 50 percent by Amarillo Midstream and 50 percent by an affiliate of Rattler. The JV owns and operates the Yellow Rose gas gathering and processing system with total processing capacity of 40,000 Mcf/d and over 84 miles of gathering and regional transportation pipelines in Dawson, Martin, and Andrews counties, Texas.
This partnership will also construct and operate a new 60,000 Mcf/d natural gas cryogenic processing plant in Martin County, Texas, in addition to incremental gas gathering and regional transportation pipelines.
The new plant should begin full commercial operations in mid-2021. Diamondback has contracted for a portion of the new processing plant's capacity.
"We are very pleased to partner with Rattler on this exciting new natural gas focused midstream JV in the Midland Basin," said Dan Revers, Managing Partner and Founder of ArcLight. "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."
ArcLight is a Boston-based infrastructure firm focused on North American energy assets. To date, it has invested $22 billion in over 100 transactions.
Rattler Midstream is a limited partnership formed in July 2018 by Diamondback to own, operate, develop and acquire midstream infrastructure assets in the Midland and Delaware Basins of the Permian Basin.
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