Pinnacle Midstream to Double Midland Basin Processing Capacity
(P&GJ) — Houston-based Pinnacle Midstream II on Tuesday announced it has reached a final investment decision (FID) to expand its operations in the gas-rich Midland Basin with the construction of a 220 MMcf/d natural gas processing plant.
The addition of a second train at Pinnacle’s Dos Picos processing complex in Midland County, Texas, will double Pinnacle’s natural gas processing capacity in the basin to 440 MMcf/d, the company said. It aims to start commercial operation of the new facilities in the fourth quarter of 2024.
In addition to the new processing unit, Pinnacle said it intends to expand gathering and compression facilities throughout Midland, Martin, and Glasscock counties to accommodate expected and future volumes. It did not provide details on specific growth plans beyond the processing addition.
The company’s infrastructure is anchored by long-term acreage dedications with active Permian operators and designed for efficient expansions to support high-intensity pad development and increasing gas/oil ratio throughout the basin.
Pinnacle founder and CEO J. Greg Sargent said the Dos Picos processing expansion “ensures we can provide the best service to our current and future customers, maximize their recoveries, and help limit flaring across the basin.
The Train II facility will complement Pinnacle’s existing processing facilities and high-pressure, large diameter gathering and compression infrastructure that commenced operations during the first quarter of 2021.
The company also provides multiple bi-directional and high-pressure third-party interconnects with peer companies within the region to maximize flow assurances for producers and third-party midstream customers, the company said.
Pinnacle Midstream II is backed by Energy Spectrum Capital, a Dallas-based infrastructure firm that makes direct investments in companies that acquire, develop, and operate energy assets in North America.
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