Piñon Starts Work on N.M. Sour Gas Treatment, Carbon Capture Facility

HOUSTON (P&GJ) — Piñon Midstream announced today that it has started construction on the Dark Horse Sour Gas Treating and Carbon Capture Facility and associated pipeline infrastructure in the Delaware Basin of New Mexico.

(image: Piñon Midstream)

The Lea County greenfield project was designed with a centralized amine treating facility, an 18,000-foot-deep acid gas sequestration well and 30,000 horsepower of full NACE field compression and is expandable to treat up to 400 million cubic feet of sour gas per day.

The Piñon assets are designed to gather and treat natural gas containing any concentration of H2 S and CO2 and deliver treated sweet gas to multiple third-party gas processing plants, the Houston-based start-up said.

“Not only does our project provide a comprehensive solution," said Piñon Midstream co-founder and President Steven Green, but "it also substantially reduces flaring and greenhouse gas emissions in southeast New Mexico.”

The Dark Horse Facility and its associated pipelines are to be the first purpose-built, sour gas infrastructure solution of its kind in the Delaware Basin, the company said.

Piñon was founded in December 2020 by Green and Justin Bennett in partnership with Black Bay Energy Capital to provide "a long-term, economic and environmentally responsible solution to the pervasive sour gas problem that has constrained development in the northeastern Delaware Basin," it said.

“The Piñon team is providing a mission-critical solution to sustain development of the northeastern portion of the Delaware Basin,” said Ameredev Chief Operating Officer Floyd Hammond. “Piñon’s facilities support some of the most prolific wells in the basin.”

The Piñon facilities are underwritten by a substantial long-term dedication from anchor producer Ameredev II, LLC, an independent exploration and production company with operations focused in the northern Delaware Basin.

“We are proud to say that our Independence AGI #1 sequestration well is New Mexico’s deepest and largest acid gas injection well,” said Bennett, Piñon's co-founder and chief commercial officer.

“It has the ability to permanently sequester up to 175,000 tons of CO2 and 75,000 tons of H2 S annually. That capacity will double next year when we drill Independence AGI #2," he said.

Piñon expects the Dark Horse Facility will begin operations in July 2021 at full capacity, treating approximately 85 MMcf/d of sour gas. The company said it has also purchased a second amine treating plant that is scheduled to be installed and operational in the fourth quarter of 2021, increasing Piñon’s total sour gas treating capacity to approximately 170 MMcf/d.

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