HOUSTON--(BUSINESS WIRE)--Pinnacle Midstream announced today the completion of multiple crude oil, gas gathering and processing projects in the northern Delaware Basin, one of the most active oil and gas producing basins in the United States. Pinnacle began operations of 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. The project also included constructing 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.
“We are very happy with the high-quality assets our team constructed over the past 12 months,” said J. Greg Sargent, Founder and Chief Executive Officer at Pinnacle. “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.”
Pinnacle also began construction of a crude oil stabilization facility capable of stabilizing up to 5,000 barrels per day, which could be expanded as needed to meet customer demand. The Sierra Grande Crude Stabilization Facility is scheduled to begin operations in fourth quarter of 2018 and will accept both trucked and pipeline delivered high RVP barrels that need stabilization to meet downstream pipeline requirements.
“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,” said Drew Ward, Chief Commercial Officer at Pinnacle.
Pinnacles’ midstream infrastructure is anchored by long-term acreage dedications with top-tier Permian operators. The company’s gathering systems are designed to support multi-well pad development, which is anticipated to accelerate through the rest of the year and into 2019. Pinnacle anticipates further expansions of its gathering systems and processing capacity, which could include multiple additional natural gas processing plants, as early as the second quarter of 2019.
About Pinnacle Midstream
Pinnacle Midstream, LLC is an independent midstream energy company headquartered in Houston, Texas. The company is focused on crude oil gathering, natural gas gathering and processing, compression, treating, water and condensate handling and stabilization. Pinnacle currently owns and operates approximately 100 miles of natural gas and crude oil pipeline, a natural gas processing complex and 30,000 barrels of crude oil transloading and storage capacity in the Delaware Basin. Pinnacle is a portfolio company of I Squared Capital.
About I Squared Capital
I Squared Capital is an independent global infrastructure investment manager focusing on energy, utilities, telecommunications and transport in the Americas, Europe and Asia. The firm has offices in Hong Kong, Houston, London, Miami, New Delhi, New York and Singapore.