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Development of the Gemini Carthage Pipeline in Texas

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World Pipelines,


Gemini Midstream Holdings, LLC and its affiliates have announced the development of the Gemini Carthage Pipeline, a new natural gas system in Harrison and Panola Counties, Texas, capable of delivering in excess of 1.2 billion ft3/d of high pressure, dry natural gas into the Carthage area. The system will be operational in the 1Q19 and will initially serve natural gas produced by Rockcliff Energy II LLC from a dedicated area encompassing over 180 000 acres. This new dedication will bring the total gross acres dedicated to Gemini to over 260 000 acres across East Texas and North Louisiana.

In addition to the Gemini Carthage Pipeline, Gemini is seeking customers for a proposed natural gas pipeline from Carthage to the Beaumont area in Orange County, Texas, to connect growing natural gas supply in the Arklatex region to premium markets along the Texas and Louisiana Gulf Coast. The Gemini Gulf Coast Pipeline will be capable of delivering over 1.5 billion ft3/d of natural gas to such markets, providing shippers with access to growing liquefied natural gas export and industrial markets.

In early 2018, together with its initial customer, Tanos Exploration III, LLC, Gemini formed Gemini Arklatex Partners, LLC (Arklatex joint venture) to build a gas-focused midstream business in East Texas and North Louisiana. The company initially made two acquisitions in Harrison County, Texas and Lincoln Parish, Louisiana, with over 150 miles of natural gas gathering pipelines. The acquired assets have provided Gemini with a strategic asset base in the core of the Haynesville, and are optimally situated to meet the increased development activity in both areas.

Gemini is led by industry veterans and supported by Quantum Energy Partners, a leading energy private equity firm. Management and Quantum have made substantial financial commitments to fully fund the buildout of the company’s strategic asset base and growth initiatives in the Arklatex region, including the development of GGCP.

Gemini was founded by John O’Shea as Chief Executive Officer, Kevin Coxon as Chief Operating Officer, Chris Hearn as Chief Financial Officer and Cesar Espino as EVP Engineering and Operations. Prior to Gemini, O’Shea served as Chief Executive Officer of Navigator Energy Services, LLC, a Permian Basin crude oil transport, gathering and storage company that was sold to NuStar Energy L.P. for approximately US$1.5 billion in May 2017. Prior to Navigator, O’Shea and Coxon founded Millennium Midstream Partners, where they executed a buy-and-build strategy over a six-year period with gas gathering assets in East and Central Texas and processing assets in South Louisiana. Hearn was co-founder of Strata Energy Investments and previously co-founded and jointly led the First Reserve Energy Infrastructure Funds business, including First Reserve’s original investment in Navigator. Espino has held a range of senior operations roles, including Chief Operating Officer at Tristream Energy LLC and VP of Midstream Operations for Eagle Rock Energy Partners LP. Gemini’s executive team is rounded out with Chief Administrative Officer Ken Hertel, who formerly served as Vice President, Chief Accounting Officer and Controller of PennTex Midstream Partners, LP.

John O’Shea remarked on the transaction with Rockcliff, “We found the perfect partner to add to our growing Arklatex gas business. Alan Smith is an exceptional entrepreneur who has built many successful energy companies, and we are excited that he and his team will participate with us in the Arklatex Joint Venture. Quantum continues to assist us with our growth, and I’m pleased that they are fully supportive of Gemini undertaking GGCP, which will provide a direct outlet for the growing Haynesville production in East Texas to the booming Gulf Coast markets. We look forward to helping more producers and downstream customers achieve their business objectives.”

Dheeraj Verma, President of Quantum, commented, “We are excited by the momentum that Gemini has created by offering creative midstream solutions to East Texas producers. The management team is led by proven entrepreneurs, and our substantial equity commitment demonstrates our confidence in their extensive industry experience, reputation and customer-driven approach.”

Read the article online at: https://www.worldpipelines.com/project-news/28122018/development-of-the-gemini-carthage-pipeline-in-texas/

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