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.

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