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.

Our Partners

Piñon Midstream is backed by an equity capital commitment from Black Bay Energy Capital.

Environmental Benefits for our Customers

  • The Dark Horse Sour Gas Treating and Carbon Capture Facility will sequester CO2 and H2S in rock formations over three miles beneath the surface, preventing these gases from entering the atmosphere. 
  • Without the need to flare sour gas, operators will be able to eliminate the formation of sulfur dioxide, one of the chemicals that causes acid rain. 
  • CCS Program: capturing and sequestering CO2 enables Piñon’s customers to strengthen their respective ESG programs by directly reducing greenhouse gas emissions. 

What is Sour Gas?

Oilfield services giant Schlumberger provides the following definition for the term “sour gas”: A general term for those gases that are acidic either alone or when associated with water. Two sour gases associated with oil and gas drilling and production are hydrogen sulfide, H2S, and carbon dioxide, CO2.

The U.S. Environmental Protection Agency gives the following definitionNatural gas is considered "sour" if hydrogen sulfide (H2S) is present in amounts greater than 5.7 milligrams per normal cubic meters (mg/Nm ) (0.25 grains per 100 standard cubic feet [gr/100 scf]). The H2S must be removed (called "sweetening" the gas) before the gas can be utilized. If H2S is present, the gas is usually sweetened by absorption of the H2S in an amine solution. Amine processes are used for over 95 percent of all gas sweetening in the United States.