Piñon Midstream Increases Delaware Basin Sour Gas Treating Capacity, New Mexico
[Click image to enlarge]
Piñon Midstream has commissioned its third 450-GPM amine treating unit, which is now in service at its sour natural gas treating and carbon capture facility, the Dark Horse Treating Facility located in Lea County, New Mexico. In addition,
Piñon also said it 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.
Piñon’s founding partner and chief executive officer, Steven Green, said he 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. This important milestone underscores our mission to unlock substantial acreage across the Delaware Basin while improving the environmental impact of oil and gas production,” said Green.
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 percent to ~270 MMcf/d. The Dark Horse Treating Facility includes a total of 1,350 GPM of amine treating and two 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).
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 additional 900 GPM amine treating units (Amine Trains IV, V, and VI), each with capacity up to 220
MMscfd
• Two cryogenic processing plants with total permitted processing capacity of 460 MMscfd
• Three TEG dehydrators for Amine Trains IV, V, and VI
• One 10,000 BBL/d condensate stabilizer
• 4,400 barrels of storage capacity
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.
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.
Piñon Midstream was formed in 2020 through an initial equity commitment from Black Bay Energy Capital 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.
Be in-the-know when you’re on-the-go!
FREE eNews delivery service to your email twice-weekly. With a focus on lead-driven news, our news service will help you develop new business contacts on an on-going basis.
CLICK HERE to register your email address.
Copyright © 2024 Mining Connection LLC. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
For licensing permission, .(JavaScript must be enabled to view this email address)
