Sanchez Energy Corporation has entered into joint venture agreements with Targa Resources Partners LP (Targa) to construct a new cryogenic natural gas processing plant and associated high pressure gathering pipelines near Sanchez Energy's Catarina asset in the Eagle Ford Shale. The processing plant, which will be located in La Salle County, Texas, is expected to have initial capacity of 200 million cubic feet per day (MMcf/d) with the ability to increase to 260 MMcf/d.

In connection with the joint venture agreements, Sanchez Energy intends to invest approximately $115 million and receive a 50% ownership interest in the plant and the approximately 45 miles of high pressure gathering pipelines that will connect SN's existing Catarina gathering system to the plant. Targa will hold all of the transportation capacity on the pipeline, and the gathering joint venture will receive fees for transportation.

Tags: Sanchez Energy Corporation