Enterprise Bolsters Delaware Basin Position with Pinon Midstream Acquisition

Enterprise Products Partners (EPD) has solidified its presence in the Delaware Basin by completing the acquisition of Pinon Midstream.

Pinon Midstream's extensive network of natural gas gathering and treating assets, including the state-of-the-art Dark Horse Treating Facility, will significantly augment EPD's existing operations in the region.

The Dark Horse facility, with its recent capacity expansion and future growth projects, is poised to handle increasing volumes of sour natural gas. In February 2024, Pinon obtained a critical NSR air permit, paving the way for substantial growth at the Dark Horse Treating Facility. The approved permit allows for the construction of three additional 900 GPM amine treating units (Amine Trains IV, V, and VI), each with a capacity of up to 220 MMscfd. Additionally, the permit authorizes the construction of two cryogenic processing plants with a combined capacity of 460 MMscfd, three TEG dehydrators for the new amine trains, a 10,000 BBL/d condensate stabilizer, and 4,400 barrels of storage capacity.

Pinon Midstream has been a pioneer in carbon capture and sequestration, reducing the environmental impact of oil and gas production in the Delaware Basin. Most recently, Pinon Midstream secured EPA approval for its MRV plan, enabling the permanent sequestration of CO2 in its two AGI wells at the Pinon Dark Horse Treating Facility. The two AGI wells are permitted for a combined 20 MMcf/d of CO2 and H2S injection.

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