Piñon Midstream was established in 2020 specifically to unlock constrained resource potential in the Delaware Basin.
Piñon’s footprint is in an area where upstream development has been constrained by the extreme concentrations of hydrogen sulfide (H2S) in the gas stream. The high volumes of H2S have forced producers to divert rigs to other areas, flare sour gas, or shut-in wells—eliminating an important resource development opportunity and revenue stream.
To solve this problem for producers, Piñon Midstream has designed the most long-term, economic, environmentally responsible solution for the pervasive sour gas challenges in the region.
Carbon Capture and Sequestration
In addition to removing dangerous hydrogen sulfide (H2S), Piñon’s Dark Horse facility removes carbon dioxide (CO2) from the incoming gas stream and injects it 18,000 feet below the surface into Devonian era rock formations where it will stay — permanently. Extensive studies have shown that these formations provide optimal sequestration for both CO2 and H2S. By capturing carbon and permanently sequestering it, Piñon’s CCS program can make meaningful contributions to its customers’ ESG objectives.
We believe our solution will significantly enhance the economics of oil and gas development in this part of the Delaware Basin. In addition, treating sour gas at the Dark Horse facility will allow oil and gas companies — our customers — to make positive, measurable environmental impacts.
Piñon Midstream is backed by an equity capital commitment from Black Bay Energy Capital.