Atlas Pipeline Partners starts up new Permian processing plant

Atlas Pipeline Partners LP

Atlas Pipeline Partners LP (NYSE: APL) has brought into service its Edward processing plant, with capacity of 200 million cubic feet per day, in the Permian Basin. The addition of the Edward facility increases the name-plate processing capacity on APL's WestTX system from 455 MMCFD to 655 MMCFD, an increase of approximately 44%. The incremental capacity, located in Upton county near the Benedum plant, is fully integrated into the WestTX system and can process producer volumes from anywhere across APL's footprint. 

Due to the continuing high level of dedicated producer activity across the Partnership's WestTX system, the initial utilization of the Edward processing plant's 200 MMCFD of processing capacity has exceeded APL's preliminary expectations. The WestTX system is currently processing in excess of 515 MMCFD, approximately 79% of the new system-wide capacity of 655 MMCFD. 

The Partnership anticipates volumes to increase throughout the remainder of 2014 and into the first half of 2015, and is expecting the system to be fully utilized by mid-2015. Management expects the next processing expansion, the previously announced Buffalo plant, to be in service in mid-2015. The addition of the Buffalo plant would add a further 200 MMCFD of processing capacity and would bring the WestTX system to 855 MMCFD of total name-plate processing capacity. 

Expected costs for both the Edward and Buffalo plant are anticipated to be $100-120 million (net) for each facility, not including field compression, gathering pipeline, and well connection costs. The Partnership continues to anticipate adding an incremental 200 MMCFD processing plant in each of the next five years.

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