Piñon Midstream, LLC (“Piñon”), today announced its greenfield Dark Horse Sour Gas Treating and Carbon Capture Facility (“Dark Horse Facility”) and associated pipeline infrastructure are under construction in Lea County, New Mexico (Piñon was formed in 2020 by midstream veterans Steven Green and Justin Bennett to provide a viable solution to the sour gas problem in the northeastern Delaware Basin -- the larger of the two major lobes of the Permian Basin).
The project includes a centralized amine treating facility, an 18,000-foot-deep 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 of sour gas per day. The Piñon assets are designed to gather and treat natural gas containing any concentration of H2S 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 President Green. “Not only does our project provide a comprehensive solution for sequestering CO2 and H2S, it also substantially reduces flaring and greenhouse gas emissions in southeast New Mexico.”
According to Piñon's announcement, 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. Piñon 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 million cubic feet 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 H2S annually. That capacity will double next year when we drill Independence AGI #2. The Piñon H2S 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.”
Piñon delivers a full menu of sour gas services that include field gathering and compression, sour condensate stabilization and marketing, amine treating for removal of H2S and CO2, H2S and CO2 geologic sequestration, and high-pressure delivery of treated sweet gas to multiple area third-party processing plants. For more information, please visit www.pinonmidstream.com.