#United States #Dallas #Tailwater Capital #Producers Midstream #Palo Duro Pipeline

Producers Midstream Launches Open Season for Transportation Service

On June 30, 2025, Producers Midstream II, LLC, a subsidiary of Tailwater Capital, announced the launch of a binding Open Season for its proposed firm transportation service on the Palo Duro Pipeline. This initiative invites interested parties to secure long-term transportation rights on a newly planned natural gas pipeline designed to meet the growing energy demands across the U.S.

The Palo Duro Pipeline will leverage existing infrastructure to create a new route that connects the Waha residue markets located in Texas's Permian Basin with the Mid-Continent residue markets in the Anadarko Basin. This strategic orientation is crucial for meeting the rising demand for natural gas, especially in the sectors of industrial production, petrochemical manufacturing, power generation, and emerging AI-driven power solutions.

Matt Flory, the CEO of Producers Midstream, emphasizes that this Open Season represents a significant advancement for the Palo Duro Pipeline, highlighting the company’s commitment to providing infrastructure that is scalable and responsive to market needs. He noted that the pipeline's exceptional interconnectivity offers a vital outlet for the gas-producing capabilities of the Permian Basin, ultimately facilitating the growth of AI-powered energy solutions among other market needs.

The proposed pipeline is set to originate in Nolan County, Texas, and will interconnect with a variety of interstate pipelines, including NNG, Transwestern, NGPL, ANR, PEPL, EGT, and Southern Star. This setup grants shippers flexible access to various downstream markets, enhancing opportunities for sourcing gas from multiple points across the interstate, intrastate, and regional gathering grids.

During the Open Season, which runs from June 30 to July 14, 2025, potential shippers can engage with the project to secure these long-term rights. This initiative is not about constructing new facilities; instead, the company intends to convert its existing 16-inch diameter intrastate pipeline, which stretches approximately 275 miles from Nolan County to Wheeler County, into an interstate service, thus maximizing existing resources.

The Palo Duro Pipeline will include leased capacity on the Header System that extends from the Texas Panhandle into parts of western Oklahoma. By utilizing its own existing pipeline and this leased capacity, Producers Midstream aims to offer comprehensive FERC-jurisdictional interstate transportation services.

Producers Midstream anticipates that the pipeline will begin service operations in the first quarter of 2026, contingent upon receiving necessary authorizations from the Federal Energy Regulatory Commission (FERC). The forthcoming application will seek authorization under Section 7(c) of the Natural Gas Act.

For those interested in learning more about the project, such as technical specifications, bidding requirements, and contracting processes with winning bidders, detailed information can be found on the company’s website.

Founded in 2016, Producers Midstream focuses on maximizing customer value through tailored midstream solutions supported by reliability, predictability, and excellent service. Tailwater Capital, the parent firm, is a private equity company based in Dallas, dedicated to delivering valuable infrastructure solutions, having raised around $5 billion since its inception.

The Palo Duro Pipeline project not only reshapes the transport landscape for natural gas but also positions Producers Midstream as a key player in supporting evolving energy demands throughout the nation.

Contact Information

For inquiries related to the Open Season, interested parties can reach out via email or phone directly to the management team. For more information, visit Producers Midstream's news page.