Amarillo Midstream, an ArcLight Capital Partners portfolio company, and an affiliate of Rattler Midstream, a subsidiary of Diamondback Energy, have entered into a 50/50 joint venture to own, operate and expand a natural gas gathering and processing system in the Midland basin.
Amarillo Rattler, owned 50% by Amarillo Midstream and 50% by an affiliate of Rattler, currently owns and operates the 40-MMcfd Yellow Rose gas gathering and cryogenic processing system including over 84 miles of gathering and regional transportation pipelines in Dawson, Martin, and Andrews Counties, Texas.
The JV intends to construct and operate a new 60-MMcfd natural gas cryogenic processing plant in Martin County, Tex., as well as incremental gas gathering and regional transportation pipelines. Full commercial operations are expected in mid-2021. Diamondback has contracted for a portion of the new processing plant's capacity.