Investors Midstream

Piñon Midstream launches Dark Horse Facility project for gas treating and CCUS

Piñon-Midstream-launches-Dark-Horse-Facility-project-for-gas-treating-and-CCUS

Midstream solutions provider Piñon Midstream announced today its greenfield Dark House Sour Gas Treating and Carbon Capture Facility, also called Dark Horse Facility. Indeed, this project is currently under construction in Lea County, New Mexico, along with its associated pipeline infrastructure.

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Piñon Midstream on launching Dark Horse Facility project

Today, midstream solutions provider Piñon Midstream announced its greenfield Dark Horse Facility project. Therefore, the company is currently constructing a sour gas treating and carbon capture facility with its associated pipeline infrastructure in Lea County, New Mexico.

Indeed, midstream veterans Steven Green and Justin Bennett founded Piñon in December 2020 in partnership with Black Bay Energy Capital. Thus, the company aims to provide long-term, economic, and environmentally responsible solutions to the pervasive sour gas problem. In fact, this issue has deeply constrained development in the northeastern Delaware Basin.

Thus, the Dark Horse Facility project includes a centralized amine treating facility and an 18,000-foot-deep acid gas sequestration well (Independence AGI #1). It also has 30,000 horsepower of full NACE field compression and is expandable to treat up to 400 million cubic feet of sour gas per day.

Therefore, the Piñon assets would gather and treat natural gas containing any concentration of H 2 S and CO 2. Moreover, they will have the ability to deliver treated sweet gas to multiple third-party gas processing plants.

Reception and the facility’s potentialities

“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. Therefore, “not only does our project provide a comprehensive solution for sequestering CO 2 and H 2 S. In fact, but it also substantially reduces flaring and greenhouse gas emissions in southeast New Mexico.”

Notably, the Dark Horse Facility and its associated pipelines are the first purpose-built sour gas infrastructure solution of its kind in the Delaware Basin. Also, the Piñon facilities are underwritten by a substantial long-term dedication from anchor producer Ameredev II, LLC.

The latter is an independent exploration and production company with operations focused in the northern Delaware Basin. Accordingly, Ameredev Chief Operating Officer Floyd Hammond said:

“The Piñon team provides a mission-critical solution to sustain the development of the northeastern portion of the Delaware Basin. Thus, Piñon’s facilities support some of the most prolific wells in the basin.”

Finally, the company expects the Dark Horse Facility to begin operations in July 2021 at full capacity; treating approximately 85 million cubic feet of sour gas per day. Hence, the company purchased a second amine treating plant, which will be operational in the fourth quarter of 2021.

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