Pinnacle Midstream, an independent energy infrastructure company, announced this Friday that the Phase II of the Dos Picos natural gas complex is underway. This second phase implies the construction of a natural gas processing facility, that will have 200 million cubic feet per day of capacity.
Firstly, the project locates in a Midland Basin site, in Midland County, Texas; the company expects to enter commercial operations by the second quarter of 2022. The Dos Picos development will complement the company’s existing high pressure, large diameter gathering and compression facilities that commenced operations during the first quarter of 2021.
Secondly, Dos Picos will provide access for the company to the most competitive downstream markets; while maximizing the netback and optionality for Pinnacle’s customers. The facility will include a Nitrogen Rejection Unit that will add to the complex’ reliability.
Thirdly, that is not the only special development of Dos Picos; as the company remains committed to its environmental stewardship; it is planning to develop a fully integrated solar facility adjacent to the Dos Picos Plant; to supplement electrical power needs with renewable energy to reduce the carbon intensity of the system.
Moreover, this low-impact solution should reduce direct greenhouse gas emissions for Pinnacle as well as indirect (Scope 2) emissions for its growing customer base.
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Pinnacle Midstream expects to generate jobs and minimize flaring in the area
Indeed, Pinnacle intends to deploy low-impact energy sources where applicable across its asset portfolio; consequently, the Dos Picos project itself should play a pivotal role in continuing to reduce the flare intensities across the Permian Basin.
In addition, about the relevance of the Dos Picos asset, J. Greg Sargent, Chief Executive Officer at Pinnacle, said. “This is an exciting milestone in the growth of Pinnacle’s infrastructure platform and will enable the Company to extend its natural gas services franchise across one of the most active oil and gas producing regions in North America.”
He also added. “Our continued investment in the Dos Picos asset will enable us to better service our customers; while continuing to maximize recoveries and limit flaring across the Basin. We expect the Phase II project to support economic development; and also create jobs in the Midland, Martin and Glasscock counties area.”
Finally, Drew Ward, Chief Commercial Officer at Pinnacle, commented. “With the increasing development of multi-well pads and higher production rates in the Midland Basin, we want to ensure our current and future customers will continue to receive reliable flow assurance as well as access to the best commercial markets.”
