Piñon Midstream Increases Delaware Basin Sour Gas Treating Capacity by ~50% and Obtains Critical NSR Permit to Continue Expansions
22 May 2024 - 1:30PM
Business Wire
Piñon Midstream, LLC (“Piñon”) is pleased to
announce the commissioning of its third 450-GPM amine treating unit
(“Amine Train III”), which is now in service at its sour
natural gas treating and carbon capture facility, the Dark Horse
Treating Facility (“Dark Horse”), located in Lea County, New
Mexico. In addition, Piñon has received a critical New Source
Review (“NSR”) air permit, which enables the execution of
additional capital expansion projects at Dark Horse, including
construction of Amine Trains IV, V and VI, as well as two cryogenic
processing plants.
Dark Horse Treating Facility and Carbon Capture
Update
On May 8, 2024, Piñon successfully placed Amine Train III
in-service at the Dark Horse Treating Facility, increasing the sour
natural gas treating capacity of the facility by 50% to ~270
MMcf/d. The Dark Horse Treating Facility includes a total of 1,350
GPM of amine treating and two (2) operational Devonian acid gas
injection wells, each with depths of ~18,000 feet, permitted for 20
million standard cubic feet per day (MMscfd) of acid gas injection.
Since initiating operations in August 2021, Piñon has reduced the
environmental impact of oil and natural gas production in the
Delaware Basin through the capture and permanent geologic
sequestration of more than 225,000 MT of carbon dioxide (CO2) and
hydrogen sulfide (H2S).
Receipt of Critical NSR Permit Enables Continued
Infrastructure Expansion at Dark Horse
In February 2024, Piñon received a critical NSR air permit,
opening the way for future growth projects at the Dark Horse
Treating Facility. Incremental infrastructure and expansions that
are included in the newly approved NSR air permit include:
- Three (3) additional 900 GPM amine treating units (Amine Trains
IV, V, and VI), each with capacity up to 220 MMscfd;
- Two (2) cryogenic processing plants with total permitted
processing capacity of 460 MMscfd;
- Three (3) TEG dehydrators for Amine Trains IV, V, and VI;
- One (1) 10,000 BBL/d condensate stabilizer; and
- 4,400 barrels of storage capacity.
Comments from Piñon Founding Partner and CEO Steven
Green
Piñon’s Founding Partner and Chief Executive Officer, Steven
Green, extends his gratitude to the entire Piñon team and essential
contractors for their diligent efforts in successfully completing
recent system expansions. These expansions include the
commissioning of Amine Train III, new sour gas gathering and gas
lift pipelines, a 15,000-horsepower compression station, and
additional interconnects for downstream processors.
“With the recent receipt of the NSR permit, Piñon is
well-positioned to significantly expand our sour gas treating and
carbon capture operations within the Delaware Basin,” said Piñon
CEO Steven Green. “This important milestone underscores our mission
to unlock substantial acreage across the Delaware Basin while
improving the environmental impact of oil & gas
production.”
Sour Gathering System and Compression Additions
In April 2024, Piñon completed the expansion of its sour natural
gas gathering system through the addition of ~5 miles of fully
NACE-compliant 16” high pressure steel pipeline. Piñon also
completed installation of its fifth fully NACE compliant compressor
station, the Comanche Peak Compressor Station. Piñon now owns and
operates over 15 miles of fully NACE compliant 16” high pressure
steel pipeline and five compressor stations with ~270 MMcf/d of
total sour gas compression capacity.
Sweet Gas Redelivery System Update and Additional Downstream
Interconnect
Piñon’s Grande sweet gas pipeline system, consisting of ~22
miles of 20” high-pressure steel pipe, connects the Dark Horse
Treating Facility with multiple downstream processors, providing
customers with processing optionality for treated natural gas.
Piñon recently executed a sixth interconnect agreement with a new
downstream processor, which will increase downstream takeaway and
processing capacity to more than 500 MMcf/d. Additionally, Piñon
has expanded its gas redelivery capabilities with reliable and
cost-effective treated natural gas for gas lift and power
generation operations.
About Piñon Midstream
Piñon Midstream was formed in 2020 through an initial equity
commitment from Black Bay Energy Capital (“Black Bay”), to offer
sustainable and cost-effective solutions for sour natural gas
production in the Delaware Basin. Piñon provides a comprehensive
suite of services, including fully NACE compliant field gathering
and compression, amine treating, permanent sequestration of CO2 and
H2S, sour condensate stabilization and marketing, and high-pressure
redelivery of treated natural gas to multiple regional processing
facilities and producers. For more information, please visit
pinonmidstream.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240522572819/en/
Redbird Communications Bevo Beaven Email: bevo@redbirdPR.com
Mobile: (720) 666-5064