Pinnacle Midstream II LLC is adding a second natural gas processing plant at the Dos Picos gas gathering system and processing complex in Midland County, Tex., as part of an expansion of the operator’s Midland basin operations (OGJ Online, Dec. 15, 2020).
Scheduled to reach startup and full commercial operation during 2024, the new 220-MMcfd Train II will increase Pinnacle’s overall gas processing capacity in Midland basin to more than 440 MMcfd, the operator said on July 11.
Train II will complement Pinnacle’s existing processing capabilities and high-pressure, large-diameter gathering and compression infrastructure that began operating during first-quarter 2021, the company said.
Pinnacle previously commissioned a 200-MMcfd Train I at Dos Picos during second-quarter 2022, according to Saulsbury Industries Inc., which delivered engineering, procurement, and construction on the project.
“This is an exciting next step for Pinnacle's growing base of Midland basin producers. Expanding the Dos Picos capacity by 220 MMcfd ensures we can provide the best service to our current and future customers, maximize their recoveries, and help limit flaring across the basin,” said J. Greg Sargent, Pinnacle’s founder and chief executive officer.
Alongside announcing the Train II project, Pinnacle also confirmed it will also expand its strategically located gathering and compression infrastructure throughout Midland, Martin, and Glasscock counties to accommodate anticipated future volumes already anchored by long-term acreage dedications with active private and public Permian operators.
“The extremely productive acreage being developed by our customers, as well as Dos Picos’ strategic Midland basin location, ensure that we can provide the safest, most economical, and efficient options for our customers for many years to come,” said Drew Ward, Pinnacle’s chief commercial officer.
Pinnacle—which provides multiple bi-directional and high-pressure third-party interconnects with peer companies within the Midland basin to maximize flow assurances and access to the most competitive downstream markets for its producers and third-party midstream customers—is backed by growth capital from management and Energy Spectrum Capital.