Pinnacle Midstream said Aug. 15 it has completed 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 U.S.
Pinnacle began operations of a new 60 million cubic feet per day 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 barrels, and new connections to multiple downstream crude oil and natural gas pipelines in Culberson and Reeves counties, Texas.
Pinnacle also began construction of a crude oil stabilization facility capable of stabilizing up to 5,000 barrels per day, which could be expanded as needed to meet customer demand. The Sierra Grande Crude Stabilization Facility is scheduled to begin operations in fourth quarter of 2018 and will accept both trucked and pipeline delivered high RVP barrels that need stabilization 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,” Drew Ward, Pinnacle’s chief commercial officer, said.
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 the second quarter of 2019.
Recommended Reading
US Drillers Add Oil, Gas Rigs for First Time in Five Weeks
2024-04-19 - The oil and gas rig count, an early indicator of future output, rose by two to 619 in the week to April 19.
Strike Energy Updates 3D Seismic Acquisition in Perth Basin
2024-04-19 - Strike Energy completed its 3D seismic acquisition of Ocean Hill on schedule and under budget, the company said.
Santos’ Pikka Phase 1 in Alaska to Deliver First Oil by 2026
2024-04-18 - Australia's Santos expects first oil to flow from the 80,000 bbl/d Pikka Phase 1 project in Alaska by 2026, diversifying Santos' portfolio and reducing geographic concentration risk.
Iraq to Seek Bids for Oil, Gas Contracts April 27
2024-04-18 - Iraq will auction 30 new oil and gas projects in two licensing rounds distributed across the country.
Vår Energi Hits Oil with Ringhorne North
2024-04-17 - Vår Energi’s North Sea discovery de-risks drilling prospects in the area and could be tied back to Balder area infrastructure.