Pinnacle Midstream announced today the completion of multiple crude oil, gas gathering and processing projects in the northern Delaware Basin, one of the most active oil and gas producing basins in the US. Pinnacle began operations of a new 60 million ft3/d natural gas processing plant (Sierra Grande I), several new compressor stations and additional low and high pressure gas gathering pipelines. The project also included constructing additional crude oil gathering pipelines, expanding a crude oil transload and storage terminal with a combined capacity of 30 000 bbls, and new connections to multiple downstream crude oil and natural gas pipelines in Culberson and Reeves Counties, Texas.
“We are very happy with the high-quality assets our team constructed over the past 12 months,” said J. Greg Sargent, Founder and Chief Executive Officer at Pinnacle. “Our investment continues Pinnacle’s first-mover approach in Culberson and Reeves Counties and will help meet the midstream needs of our current and future customers. We are excited for the near and long term opportunities that our footprint enables us to capture.”
Pinnacle also began construction of a crude oil stabilisation facility capable of stabilising up to 5000 bpd, which could be expanded as needed to meet customer demand. The Sierra Grande Crude Stabilisation Facility is scheduled to begin operations in 4Q18 and will accept both trucked and pipeline delivered high RVP barrels that need stabilisation to meet downstream pipeline requirements.
“With the increasing volatility of crude in and around Culberson and Reeves Counties we feel it is imperative to construct this strategically-located facility to continue offering first-in-class flow assurances for our customers, we look forward to continuing to grow our multiple midstream services franchise throughout the region,” said Drew Ward, Chief Commercial Officer at Pinnacle.
Pinnacles’ midstream infrastructure is anchored by long-term acreage dedications with top-tier Permian operators. The company’s gathering systems are designed to support multi-well pad development, which is anticipated to accelerate through the rest of the year and into 2019. Pinnacle anticipates further expansions of its gathering systems and processing capacity, which could include multiple additional natural gas processing plants, as early as 2Q19.
Read the article online at: https://www.worldpipelines.com/business-news/15082018/pinnacle-midstream-announces-new-projects-in-northern-delaware-basin/
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