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.
The expansion comes closely after the discovery of new proven oil reserves in and around the Banyu Urip Field, which is estimated to be more than double the previous one.
February 2020: Chesapeake Reports Results From Two High-volume Marcellus Producers
The Anadarko Basin’s Simpson shale formation is being called “one of the biggest yet-to-be-developed shale plays in the United States.”