The company has plans to construct the new cryogenic facility, Edward plant, with a capacity of 200 million cubic feet per day (MMCFD) at an estimated cost of $100m to $120m.

Edward plant will be developed with an initial capacity of 100 MMCFD, which will be eventually increased.

Pioneer Natural Resources, a partner on Atlas’ WestTX system will participate in the projects cost and cash flows and will anchor the production growth behind the expansion.

Atlas Pipeline Partners chief executive officer Eugene N Dubay said with the new plant the company will expand the processing capacity at its West Texas facility.

"This expansion, coming just on the heels of the 200 million cubic feet per day Driver plant that was just brought into service this last quarter, shows how active producers are in the Permian, including our partner, Pioneer," Dubay added.

"By the time Edward is fully implemented, our capacity will have more than tripled in West Texas in less than six years.

"We will continue to invest in our assets to serve our customers as opportunities arise to ensure we are the service provider of choice in the areas in which we operate."

The gas processing plant is expected to begin services in the second half of 2014.