PennTex Midstream Partners LLC has signed two separate midstream transactions to build two significant gathering and processing platforms in the Permian Basin and in Northern Louisiana.
Founded by Thomas F. Karam, CEO, along with Robert O. Bond, COO, and Steven R. Jones, CFO, PennTex has received a substantial equity commitment from NGP Energy Capital Management through its affiliate, NGP Natural Resources X LP.
On Feb. 21, PennTex closed on its first transaction with the acquisition of a majority interest in Atlantic Midstream LLC, which will be renamed PennTex Permian LLC. The assets under construction will serve producers in the Delaware Basin, primarily in Reeves, Pecos and Ward counties in West Texas.
PennTex Permian's first phase of operations will be in service by the end of March 2014, and will consist of low-and intermediate-pressure gathering pipelines and associated compression. In July, PennTex Permian will complete and put into service a 60-MMcf/d cryogenic natural gas processing plant in Reeves County, along with a natural gas liquids pipeline.
PennTex is in discussions with multiple producers in the region regarding midstream services, and is planning near-term expansions to add natural gas gathering and processing capacity and other services to serve growing natural gas and crude oil production in the area.
On March 17, PennTex closed the formation of PennTex North Louisiana LLC (PennTex NLA), which is a strategic joint venture (JV) between PennTex and producers in North Louisiana. The JV establishes an area of mutual interest among the parties in North Louisiana for the development of midstream infrastructure to support growing production from its partners and other producers in the area. The initial phase of growth consists of the construction of a 200-MMcf/d cryogenic processing plant and associated natural gas residue and natural gas liquids pipelines. PennTex NLA expects this initial system to be in commercial operations in the first quarter of 2015.
PennTex is in discussions with producers regarding additional expansions to its facilities as well as additional midstream services to support regional producers.