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    Pinon Midstream starts on sour gas treatment facility

Summary

The plant in New Mexico could be fully operational as soon as July.

by: Daniel Graeber

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Pinon Midstream starts on sour gas treatment facility

Houston-based Pinon Midstream said April 27 it started work in neighbouring New Mexico on a facility that would treat sour gas pulled from the regional Delaware basin.

The company’s Dark Horse sour gas treatment and carbon capture facility is already under construction. By design, Pinon said it would sweeten any shale gas that contains concentrations of hydrogen sulphide or CO2.

“Our goal is to provide the most creative and cost-effective sour gas solution for the Delaware basin,” said Pinon Midstream co-founder and president Steven Green.

Gas laced with hydrogen sulphide poses a significant health risk and its corrosive nature can be problematic for midstream and downstream operations. As such, the Dark Horse facility could eventually sweeten up to 85mn ft3/d of sour gas once operations begin in July. A separate treatment facility already in the company’s portfolio could expand that to 170mn ft3/d by the fourth quarter.

All told, the company believes its facility has the potential to eventually treat as much as 400mn ft3/d of sour gas.

The Delaware basin is situated within the broader Permian shale and straddles the border between Texas and New Mexico. The Permian shale is one of the most prolific shale basins in the US.

Pinon said the Dark Horse facility and associated midstream infrastructure is the first of its kind for the Delaware basin. The company was founded in December for the purpose of solving what it said was a pervasive sour gas problem in the shale reservoir.