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June 30, 2025

Producers Midstream Launches Binding Open Season for Firm Transportation Service on Palo Duro Pipeline

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Producers Midstream Launches Binding Open Season for Firm Transportation Service on Palo Duro Pipeline

News provided by Producers Midstream

Jun 30, 2025, 09:00 ET

DALLAS, June 30, 2025 /PRNewswire/ — Producers Midstream II, LLC (“Producers Midstream” or the “Company”), a portfolio company of Tailwater Capital focused on providing a full suite of midstream solutions to customers across the U.S., today announced the launch of a binding Open Season through its Palo Duro (“PD”) Pipeline subsidiary to solicit interest in firm transportation service on a proposed natural gas pipeline project.

The proposed pipeline project will utilize existing infrastructure to provide a new pathway interconnecting the Waha residue markets in the Permian Basin with the Mid-Continent residue markets in the Anadarko Basin. This positions it as a strategic backbone for the growing demand for natural gas in industrial, petrochemical, power generation, and AI-related behind-the-meter applications.

“This Open Season marks a key milestone for the Palo Duro Pipeline and underscores our commitment to delivering scalable, market-responsive infrastructure,” said Matt Flory, Chief Executive Officer of Producers Midstream. “The pipeline’s unique interconnectivity and strategic positioning creates a much-needed additional outlet for constrained Permian gas, while also supporting the rapid growth of AI-driven power solutions and other emerging sources of demand.”

The pipeline originates in Nolan County, Texas and will interconnect with multiple interstate pipelines—including NNG, Transwestern, NGPL, ANR, PEPL, EGT, and Southern Star — offering shippers flexible access to downstream markets. It will provide potential shippers with enhanced access and transportation opportunities, allowing them to source gas from multiple points within the interstate, intrastate, and regional gathering grid.

During the Open Season, interested parties can secure long-term firm transportation rights on the proposed pipeline project. The process will open on June 30, 2025 and end on July 14, 2025.

HIGHLIGHTS
The PD Pipeline is a high-pressure strategically located natural gas pipeline connecting key downstream pipelines while providing much needed takeaway optionality out of the Permian Basin. The pipeline is uniquely positioned to support growing demand from AI-driven power solutions and behind-the-meter power generation, in addition easing bottlenecks that currently exist across traditional industrial, petrochemical, and power markets.

Producers Midstream is not proposing to construct any new facilities as part of the Project. Rather, the Company will (1) convert to interstate service its existing 16-inch intrastate pipeline that extends north-to-south approximately 275-miles from Nolan County, Texas to an interconnection in Wheeler County, Texas with its gathering Header System and (2) include as part of the interstate service leased capacity on the Header System that extends from the Texas Panhandle into western Oklahoma. Palo Duro Pipeline will provide integrated FERC-jurisdictional interstate transportation services utilizing both its own existing pipeline and leased capacity on the Header System.

Producers Midstream is targeting an in-service date for the Project in the first quarter of 2026. To provide the new interstate services, PD plans to file an application with the FERC under Section 7(c) of the Natural Gas Act for the necessary authorizations. The Project and the proposed services are conditioned upon the receipt of FERC authorization on terms acceptable to the Company.

Additional project details, including technical specifications, requirements for bids from interested potential shippers, and the process for contracting with winning bidder(s), can be found at producersmidstream.com/news/

INQUIRIES
Inquiries about the Open Season should be directed to [email protected] or 214-238-5740 with attention to:Connor McDonough, Manager of Corporate Development
Abby Miller, Senior Commercial Analyst

About Producers Midstream
Founded in 2016, Producers Midstream is committed to maximizing the value of our customer’s operations by creating bespoke midstream systems, capable of increased reliability and predictability, supported by our culture of service, ingenuity, and responsiveness.

About Tailwater Capital
Dallas-based Tailwater Capital is an energy and environmental infrastructure private equity firm with a well-established track record of working constructively with proven management teams to deliver value-added solutions. Tailwater has raised approximately $5 billion in committed capital since inception and the team has executed more than 180 transactions representing over $26 billion in value. For more information, please visit www.tailwatercapital.com.

Forward-Looking Statements
Includes non-Tailwater controlled capital pursuant to the Tailwater led management buyout processes for which Tailwater provides management related services.

Producers Midstream Contacts
Hudson White
Chief Financial Officer
Phone: 214-238-5750
Email: [email protected]

Clark Hudnall
Chief Strategy Officer
Phone: 214-238-5754
Email: [email protected]

Tailwater Contacts
Jill McMillan
Managing Director, Communications & Public Affairs
Phone: 214-489-7047
Email: [email protected]

John Schaufele
Managing Director, Investor Relations & Fundraising
Phone: 214-489-7043
Email: [email protected]

SOURCE Producers Midstream

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