In Midland Basin, it’s Growth O’clock

Pinnacle Midstream II LLC’s Dos Picos processing plant will respond to increased gas production in the short term, but the world is expected to demand even more over the long term.

Pinnacle Midstream II LLC is expanding its Dos Picos complex in the Midland Basin. (Source: Hart Energy; Pinnacle Midstream II LLC)

Pinnacle Midstream II LLC is expanding its Dos Picos complex in the Midland Basin. (Source: Hart Energy; Pinnacle Midstream II LLC)

Focus on this analysis from McKinsey and Co.’s “Global gas outlook to 2050”:

“Gas will be the strongest-growing fossil fuel and will increase by 0.9 percent from 2020 to 2035. It is the only fossil fuel expected to grow beyond 2030, peaking in 2037. From 2035 to 2050, gas demand will decline by 0.4 percent.”

That’s the kind of forecast that could inspire somebody to want to build a gas processing plant somewhere, maybe even in the Midland Basin to take advantage of abundant volumes of associated gas. Turns out, Greg Sargent was already doing just that.

Sargent, founder and CEO of Pinnacle Midstream II LLC, had already succeeded with a project in the Delaware Basin. Backed by Energy Spectrum Capital, he told Hart Energy that he was keeping an eye out for an opportunity elsewhere in the Permian, sticking to the adage of “work hard and network, network, network.”

The result was the Dos Picos System, a high-pressure, large-diameter gathering and compression facility in the Midland Basin that began operations in the first quarter.

Already have an account? Log In

Subscribe now to get unmatched and complete coverage of the Energy industry’s entire landscape!

View our subscription options
  • Access to site wide content
  • Access to our proprietary databases
  • Watch exclusive videos with energy executives
  • Unlimited access to an extensive library of Playbooks, Techbooks, Yearbooks, supplements, and special reports
  • Newly Added! Access to Rextag's Energy Datalink, containing extensive GIS databases of energy assets, production records, processing capacities, physical locations, planned projects, acquisition records, and much more.

Joseph Markman

Joseph Markman, senior editor for Hart Energy, covers markets and provides data analysis for all Hart Energy editorial products.