Amarillo Rattle currently owns and operates the Yellow Rose gas gathering and processing system


Amarillo Midstream forms midstream JV with Rattler. (Credit: Pixabay/Nappiness)

Amarillo Midstream, an ArcLight Fund V portfolio company and Rattler Midstream’s affiliate have announced a 50:50 joint venture (JV) to own and operate natural gas gathering and processing assets in the Midland Basin, US

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).

ArcLight managing partner and founder Dan Revers 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.”

Diamondback contracted for a portion of the new processing plant’s capacity

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.

Rattler general partner CEO Travis Stice said: “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.”

Amarillo Rattler expects that the new facility will commence operations in mid of next year.