Dark Horse in the Delaware

Dark Horse in the Delaware

Reese Energy Consulting today is following the latest news from Houston-based Piñion Midstream, which was formed just last year to cure a massive headache for producers in the Delaware Basin—namely, the lack of infrastructure to gather and treat pervasive sour gas. But why solve one problem when you can eliminate two at the same time? Piñion in April broke ground on the new Dark Horse sour gas treating and CCS facility in Lea County, N.M., to also offer ESG-minded producers CO2 and H2S capture and sequestration. Now, the first of three plants has officially opened for business with an initial treating capacity of 85 MMCFD, already fully subscribed. Piñion’s second amine treating plant is due to go online later this month, increasing capacity to 170 MMCFD. And with commitments already in hand, the third is on the books for next year. Piñion also will drill a second acid gas injection well, joining its 18,000’ AGI #1—the state’s largest and deepest of its kind with a capacity to permanently sequester up to 175,000 tons of CO2 and 75,000 tons of H2S. We wish them well.

What do you think? Learn more about the REC team and our natural gas services and expertise at www.ReeseEnergyConsulting.com.

Piñon Midstream

Piñon Midstream is building the first of its kind greenfield environmental sour gas infrastructure solution designed to handle the extreme sour gas in the northeastern Delaware Basin.

www.pinonmidstream.com

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More Bite for Rattler

More Bite for Rattler

Midland, Texas-based Diamondback and its subsidiary, Rattler, enjoy a symbiotic relationship through joint ventures in the Permian that enable the former to bolster upstream development and the latter to support that production via midstream infrastructure. Reese Energy Consulting today is following the now announced sixth joint venture between the two in which Rattler has acquired a majority interest in a gathering and processing company serving the Midland sub-basin and operated by West Texas Gas. The price was not disclosed; however, Rattler invested $104 million in cash to secure a minority interest in its latest JV with Diamondback. The deal with WTG includes an interconnected gas gathering system and a whale of a bonus prize in the form of six major gas processing plants with 925 MMCF of total capacity. In addition to Rattler’s oil, gas, and water gathering pipelines and two gas processing plants, the company owns equity interests in the Permian-to-Gulf Coast EPIC and Gray Oak crude oil pipelines, as well as the Wink-to-Webster oil pipeline scheduled for service later this year.

What do you think? Learn more about REC and our natural gas and crude oil services at www.ReeseEnergyConsulting.com.

Diamondback Energy

Diamondback Energy is an American energy company engaged in hydrocarbon exploration and headquartered in Midland, Texas. As of December 31, 2020, the company had 1,316 million barrels of oil equivalent of estimated proved reserves, of which 58% was petroleum, 20% was natural gas, and 22% was natural gas liquids.

diamondbackenergy.com

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