Pinnacle Midstream has completed multiple crude oil, gas gathering and processing projects in the northern Delaware Basin in the US.


Image: The firm has commissioned a new 60 million cubic feet per day natural gas processing plant (Sierra Grande I). Photo courtesy of Michael & Christa Richert/

The firm has commissioned a new 60 million cubic feet per day natural gas processing plant (Sierra Grande I), several new compressor stations and additional low- and high-pressure gas gathering pipelines.

Additionally, the project comprises construction of additional crude oil gathering pipelines, expanding a crude oil transload and storage terminal with a combined capacity of 30,000 barrels, and new connections to multiple downstream crude oil and natural gas pipelines in Culberson and Reeves Counties, Texas.

According to Pinnacle, the northern Delaware Basin is one of the most active oil and gas producing basins in the country.

Pinnacle founder and CEO J Greg Sargent said: “Our investment continues Pinnacle’s first-mover approach in Culberson and Reeves Counties and will help meet the midstream needs of our current and future customers. We are excited for the near- and long-term opportunities that our footprint enables us to capture.”

Additionally, the firm has started construction of a crude oil stabilization facility capable of stabilizing up to 5,000 barrels per day, to support the ongoing crude oil business in the Delaware Basin.

Planned to be commissioned in fourth quarter of 2018, the Sierra Grande Crude Stabilization Facility will accept both trucked and pipeline delivered high RVP barrels that need stabilization to meet downstream pipeline requirements.

Pinnacle chief commercial officer Drew Ward said: “With the increasing volatility of crude in and around Culberson and Reeves Counties we feel it is imperative to construct this strategically-located facility to continue offering first-in-class flow assurances for our customers, we look forward to continuing to grow our multiple midstream services franchise throughout the region.”

The Pinnacles’ midstream infrastructure is backed by long-term acreage dedications and reservations fees with Permian producers and marketers.

Pinnacle said that its gathering systems will support multi-well pad development. It is planning to undertake further expansions of its gathering systems and processing capacity to include multiple additional natural gas processing plants, as early as the second quarter of 2019.