Welcome!

News Feed Item

ArcLight Capital Partners Announces Agreements to Construct and Operate New Crude Oil Gathering, Storage and Transmission Systems in the Core of the Eagle Ford Shale

BOSTON, July 30, 2014 /PRNewswire/ -- ArcLight Capital Partners, LLC ("ArcLight") announced today that Republic Midstream, LLC ("Republic Midstream"), a newly-formed portfolio company, executed agreements with Penn Virginia Corporation (NYSE: PVA; "Penn Virginia") to construct and operate a crude oil gathering system, a central delivery terminal complex and an intermediate takeaway pipeline to serve Penn Virginia's prolific acreage position in the Eagle Ford Shale.  The long-term, fee-based transportation agreements with Penn Virginia are supported by minimum volume commitments and a dedication of acreage covering the areas served by the gathering system.  ArcLight has committed $400 million to Republic Midstream, which will be managed by two of ArcLight's experienced midstream portfolio companies, American Midstream Partners, LP (NYSE: AMID; "American Midstream") and JP Energy Partners LP ("JP Energy").  ArcLight currently expects to offer each company the right to purchase 50% of Republic Midstream after the commencement of operations.

The gathering system will initially consist of 180 miles of gathering and trunk lines located in north-central Gonzales and western Lavaca counties, which will deliver gathered volumes to a 144-acre central delivery point ("CDP") in western Lavaca County capable of storing and blending crude oil volumes.  The intermediate system will initially consist of a 12-inch, 30-mile takeaway pipeline with initial capacity of 80,000 barrels per day that will receive crude volumes via pipeline and truck at the CDP and deliver batched volumes to major long haul takeaway pipelines.  The CDP and intermediate system are being designed to serve multiple market outlets and to accommodate various crude oil specifications from both Penn Virginia and third parties.  Penn Virginia is currently operating five rigs in areas served by the gathering system with over 200 developed wells and over 1,300 remaining drilling locations in the acreage dedicated to Republic Midstream.

American Midstream will perform construction, operations and general management services for Republic Midstream.  American Midstream currently owns and operates a gas gathering and redelivery system serving Penn Virginia in the same area in which the crude oil gathering system will be constructed.  In addition, an affiliate of American Midstream's general partner is currently constructing a full-well-stream gathering system for another Eagle Ford producer in Gonzalez County. 

JP Energy will perform commercial services for Republic Midstream, including working with producers to provide crude oil solutions from the wellhead to the end market.  JP Energy's crude oil supply and logistics division is active in marketing and transporting crude oil for producers in the Eagle Ford located near Republic Midstream's CDP and intermediate system and has similar operations and commercial services in other major producing basins. 

"ArcLight is excited to form a new venture managed jointly by two leading midstream operators – American Midstream and JP Energy – to leverage their existing footprints in the core of the eastern Eagle Ford Shale, a premier sub-play with some of the best drilling economics in North America," said Daniel Revers, ArcLight's Managing Partner.  "With our equity commitment, experience in capitalizing new ventures, and the proven track record of our portfolio companies managing the entity, Republic Midstream is positioned to become a critical infrastructure solution for Penn Virginia and other regional operators."

"We are excited to expand our relationship with Penn Virginia and to continue developing a significant midstream asset base for crude and natural gas systems in the Eagle Ford," stated Steve Bergstrom, American Midstream's Executive Chairman, President and Chief Executive Officer.  "The crude oil gathering, storage and transmission system American Midstream is building for Penn Virginia is highly complementary to our existing Eagle Ford gas gathering system for Penn Virginia as well as the full-well-stream system we are developing with our general partner in Gonzales County. We appreciate the affirmation of our customer-centered approach from a strong operator such as Penn Virginia, and look forward to acquiring 50 percent of Republic Midstream upon commencement of operations in early 2015."

"JP Energy has made the Eagle Ford a key area of focus with the intent to leverage our expertise in designing crude oil solutions for producers from the wellhead to the end market.  We are excited to use the market knowledge we have gained through our existing operations in the Eagle Ford and in the Permian Basin to help create a comprehensive crude oil midstream solution for Penn Virginia," stated J. Patrick Barley, CEO of JP Energy.  "We expect that as Penn Virginia and other producers continue to develop the eastern Eagle Ford, Republic Midstream's locational advantages and broad range of logistical capabilities will prove immensely valuable to both the producer community and downstream players in the crude oil markets."

ABOUT ARCLIGHT CAPITAL PARTNERS, LLC

ArcLight is one of the leading private equity firms focused on North American energy infrastructure assets. Since its establishment in 2001, ArcLight has invested over $12 billion across multiple energy cycles in more than 86 power, midstream and production assets.  Headquartered in Boston, Massachusetts with an additional office in Luxembourg, the firm's investment team brings extensive energy expertise, industry relationships, and specialized value creation capabilities to its portfolio.  More information about ArcLight, as well as a complete list of ArcLight's portfolio companies can be found at http://www.arclightcapital.com.

ABOUT AMERICAN MIDSTREAM PARTNERS, LP

Denver-based American Midstream Partners is a growth-oriented limited partnership formed to own, operate, develop and acquire a diversified portfolio of midstream energy assets. The Partnership provides midstream services in the Texas, Gulf Coast and Southeast regions of the United States. For more information about American Midstream Partners, visit www.AmericanMidstream.com.

ABOUT JP ENERGY PARTNERS LP

JP Energy Partners was formed in 2010 to focus on developing a platform of midstream assets to provide integrated services to suppliers and consumers of petroleum products. The company's assets include three million barrels of crude oil storage at Cushing, a crude oil pipeline system located in the Midland Basin gathering production from the Southern Wolfcamp, a crude oil transport operation doing business as JP Falco with operations in the Mid-Continent, the Permian and the Eagle Ford, two refined products terminals serving the Dallas and Little Rock markets, one of the largest propane distribution businesses in the U.S. with operations in 48 states, and the third largest propane cylinder exchange business in the U.S. The ownership and management team of JP Energy Partners bring extensive experience and a history of success in the energy business.

SOURCE ArcLight Capital Partners, LLC

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
"NetApp is known as a data management leader but we do a lot more than just data management on-prem with the data centers of our customers. We're also big in the hybrid cloud," explained Wes Talbert, Principal Architect at NetApp, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Gemini is Yahoo’s native and search advertising platform. To ensure the quality of a complex distributed system that spans multiple products and components and across various desktop websites and mobile app and web experiences – both Yahoo owned and operated and third-party syndication (supply), with complex interaction with more than a billion users and numerous advertisers globally (demand) – it becomes imperative to automate a set of end-to-end tests 24x7 to detect bugs and regression. In th...
"Space Monkey by Vivent Smart Home is a product that is a distributed cloud-based edge storage network. Vivent Smart Home, our parent company, is a smart home provider that places a lot of hard drives across homes in North America," explained JT Olds, Director of Engineering, and Brandon Crowfeather, Product Manager, at Vivint Smart Home, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Enterprises are adopting Kubernetes to accelerate the development and the delivery of cloud-native applications. However, sharing a Kubernetes cluster between members of the same team can be challenging. And, sharing clusters across multiple teams is even harder. Kubernetes offers several constructs to help implement segmentation and isolation. However, these primitives can be complex to understand and apply. As a result, it’s becoming common for enterprises to end up with several clusters. Thi...
The question before companies today is not whether to become intelligent, it’s a question of how and how fast. The key is to adopt and deploy an intelligent application strategy while simultaneously preparing to scale that intelligence. In her session at 21st Cloud Expo, Sangeeta Chakraborty, Chief Customer Officer at Ayasdi, provided a tactical framework to become a truly intelligent enterprise, including how to identify the right applications for AI, how to build a Center of Excellence to oper...
"IBM is really all in on blockchain. We take a look at sort of the history of blockchain ledger technologies. It started out with bitcoin, Ethereum, and IBM evaluated these particular blockchain technologies and found they were anonymous and permissionless and that many companies were looking for permissioned blockchain," stated René Bostic, Technical VP of the IBM Cloud Unit in North America, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventi...
"Cloud Academy is an enterprise training platform for the cloud, specifically public clouds. We offer guided learning experiences on AWS, Azure, Google Cloud and all the surrounding methodologies and technologies that you need to know and your teams need to know in order to leverage the full benefits of the cloud," explained Alex Brower, VP of Marketing at Cloud Academy, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clar...
"We work around really protecting the confidentiality of information, and by doing so we've developed implementations of encryption through a patented process that is known as superencipherment," explained Richard Blech, CEO of Secure Channels Inc., in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
While some developers care passionately about how data centers and clouds are architected, for most, it is only the end result that matters. To the majority of companies, technology exists to solve a business problem, and only delivers value when it is solving that problem. 2017 brings the mainstream adoption of containers for production workloads. In his session at 21st Cloud Expo, Ben McCormack, VP of Operations at Evernote, discussed how data centers of the future will be managed, how the p...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
High-velocity engineering teams are applying not only continuous delivery processes, but also lessons in experimentation from established leaders like Amazon, Netflix, and Facebook. These companies have made experimentation a foundation for their release processes, allowing them to try out major feature releases and redesigns within smaller groups before making them broadly available. In his session at 21st Cloud Expo, Brian Lucas, Senior Staff Engineer at Optimizely, discussed how by using ne...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, whic...
Coca-Cola’s Google powered digital signage system lays the groundwork for a more valuable connection between Coke and its customers. Digital signs pair software with high-resolution displays so that a message can be changed instantly based on what the operator wants to communicate or sell. In their Day 3 Keynote at 21st Cloud Expo, Greg Chambers, Global Group Director, Digital Innovation, Coca-Cola, and Vidya Nagarajan, a Senior Product Manager at Google, discussed how from store operations and ...
In his session at 21st Cloud Expo, Carl J. Levine, Senior Technical Evangelist for NS1, will objectively discuss how DNS is used to solve Digital Transformation challenges in large SaaS applications, CDNs, AdTech platforms, and other demanding use cases. Carl J. Levine is the Senior Technical Evangelist for NS1. A veteran of the Internet Infrastructure space, he has over a decade of experience with startups, networking protocols and Internet infrastructure, combined with the unique ability to it...
"Infoblox does DNS, DHCP and IP address management for not only enterprise networks but cloud networks as well. Customers are looking for a single platform that can extend not only in their private enterprise environment but private cloud, public cloud, tracking all the IP space and everything that is going on in that environment," explained Steve Salo, Principal Systems Engineer at Infoblox, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Conventio...