Atlas Pipeline intends to build the new Driver plant in two phases, with the first phase involving construction of plant and associated compression to process 100mmcfd, expected to be in service in the first quarter of 2013.
The second phase will include placement of additional compression and refrigeration equipment to increase the plant’s capacity to 200mmcfd, is scheduled to be operational in the first quarter of 2015.
Atlas Pipeline’s partner on the west Texas system, Pioneer Natural Resources, which owns a 27.2% interest in the facility, will participate in the projects costs and cash flows and will anchor the production growth behind the expansion.
Atlas Pipeline expects cash flows from the expansion to materialize in meaningful amounts during the second half of 2013.
Completion of both phases will increase processing capacity at west Texas from 255mmcfd to 455mmcfd.
Atlas Pipeline CEO Eugene Dubay said this expansion, the second announced expansion of this facility this year, is the result of increased activity in the Permian basin by the producer customers, including Pioneer, who is a partner on the system.
