Piñon Midstream Boosts Sour Gas Capacity by 50% in Delaware Basin
(P&GJ) — Piñon Midstream has announced a significant increase in its sour gas treating capacity and an expansion of its infrastructure in the Delaware Basin.
Piñon’s Grande sweet gas pipeline system, spanning about 22 miles of high-pressure steel pipe, connects the Dark Horse Treating Facility with multiple downstream processors. This provides customers with processing options for treated natural gas. Recently, Piñon secured a sixth interconnect agreement with a new downstream processor, boosting downstream takeaway and processing capacity to over 500 million cubic feet per day (MMcf/d). Piñon has also enhanced its gas redelivery capabilities, offering reliable and cost-effective treated natural gas for gas lift and power generation operations.
New Amine Unit Commissioned Piñon has commissioned its third 450-GPM amine treating unit, known as Amine Train III, at the Dark Horse Treating Facility in Lea County, New Mexico. This addition increases the facility's sour gas treating capacity by 50% to approximately 270 MMcf/d.
Critical Permit Secured for Future Expansion In February 2024, Piñon obtained a crucial New Source Review (NSR) air permit, enabling further expansion at the Dark Horse Treating Facility. The permit allows for the construction of additional infrastructure, including:
- Three new 900-GPM amine treating units (Amine Trains IV, V, and VI)
- Two cryogenic processing plants with a total capacity of 460 MMcf/d
- Three TEG dehydrators for the new amine units
- A 10,000 bbl/d condensate stabilizer
- 4,400 barrels of storage capacity
CEO’s Comments Steven Green, Piñon’s Founding Partner and CEO, praised the Piñon team and contractors for their efforts in completing the recent expansions. “With the NSR permit, Piñon is well-positioned to significantly expand our sour gas treating and carbon capture operations within the Delaware Basin,” Green said. “This milestone supports our mission to unlock substantial acreage across the Delaware Basin while improving the environmental impact of oil and gas production.”
Sour Gas Gathering System and Compression Additions In April 2024, Piñon expanded its sour natural gas gathering system with an additional five miles of high-pressure steel pipeline and installed a new compressor station, Comanche Peak. Piñon now operates over 15 miles of NACE-compliant high-pressure steel pipeline and five compressor stations with a total capacity of about 270 MMcf/d.
Since operations began in August 2021, Piñon has captured and sequestered over 225,000 metric tons of CO2 and hydrogen sulfide, reducing the environmental impact of oil and gas production in the Delaware Basin.
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