Amarillo Midstream, an ArcLight Fund V portfolio company and Rattler Midstream’s affiliate have announced a 50/50 joint venture to own and operate natural gas gathering and processing assets in the Midland Basin in Texas.
The JV, named as Amarillo Rattle, now owns and operates the Yellow Rose gas gathering and processing system as well as more than 135.1km of gathering and regional transportation pipelines in Dawson, Martin, and Andrews Counties, Texas.
The Yellow Rose gas system is estimated to have a processing capacity of 40,000 million cubic feet per day (Mcf/d).
The new entity will also build and operate a new 60,000Mcf/d natural gas cryogenic processing plant in Martin County, Texas and incremental gas gathering and regional transportation pipelines.
Diamondback Energy, a parent company of Rattler Midstream, has signed an agreement with the JV for a portion of the new processing plant’s capacity.
Amarillo Rattler expects that the new facility will commence operations in mid 2021.
