Battalion Oil contracts additional sour gas compression capacity in Permian basin
Battalion Oil Corp. has executed a long‑term agreement for additional sour gas compression capacity across its Ward and Winkler County assets in Texas, expanding midstream throughput to support current production and future development in the Permian basin.
Under the agreement, available compression capacity in the Monument Draw area will increase by roughly 50%, to more than 50 MMcfd from about 35 MMcfd, the company said in a release Apr. 29. The added capacity is expected to be available in early third‑quarter 2026.
Battalion said the agreement provides incremental compression capacity without requiring capital investment by the company and will result in a modest increase in operating expenses.
The contracted capacity is supported by a built‑for‑purpose sour gas compressor, allowing capacity to be added on a shorter timeline than typical new‑build sour compression equipment, Battalion said.