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Piñon Midstream Starts Construction On New Mexico Facility

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Piñon Midstream has begun construction on its greenfield Dark Horse Sour Gas Treating and Carbon Capture Facility and associated pipeline infrastructure in Lea County, New Mexico.

Piñon was founded in December 2020 by Steven Green and Justin Bennett in partnership with Black Bay Energy Capital to provide a long-term, economic and environmentally responsible solution to the pervasive sour gas problem that has constrained development in the northeastern Delaware Basin.

The project includes a centralized amine treating facility, an 18,000ft acid gas sequestration well (Independence AGI #1) and 30,000 horsepower of full NACE field compression and is expandable to treat up to 400 million cubic feet (mcf) of sour gas per day.

The Piñon assets are designed to gather and treat natural gas containing any concentration of H2 S and CO2 , with the ability to deliver treated sweet gas to multiple third-party gas processing plants.

“Our goal is to provide the most creative and cost-effective sour gas solution for the Delaware Basin,” said Piñon Midstream co-founder and president Steven Green. “Not only does our project provide a comprehensive solution for sequestering CO2 and H2 S, it also substantially reduces flaring and greenhouse gas emissions in southeast New Mexico.”

The Dark Horse Facility and its associated pipelines are the first purpose-built sour gas infrastructure solution of its kind in the Delaware Basin. The Piñon facilities are underwritten by a substantial long-term dedication from anchor producer Ameredev II, (Ameredev), an independent exploration and production company with operations focused in the northern Delaware Basin.

Piñon expects the Dark Horse Facility will begin operations in July 2021 at full capacity, treating approximately 85 million cubic feet of sour gas per day. The company purchased a second amine treating plant that is scheduled to be installed and operational in the fourth quarter of 2021, increasing Piñon’s total sour gas treating capacity to approximately 170 mcf per day.

“We are proud to say that our Independence AGI #1 sequestration well is New Mexico’s deepest and largest acid gas injection well,” said Piñon co-founder and chief commercial officer Justin Bennett. “It has the ability to permanently sequester up to 175,000 tons of CO2 and 75,000 tons of H2 S annually. That capacity will double next year when we drill Independence AGI #2. The Piñon H2 S and carbon capture solution opens the way for our customers to make meaningful enhancements to their ESG programs, which is a fundamental component of our business.”

For more information visit: www.pinonmidstream.com