Pinnacle Midstream breaks ground on Sierra Grande gas processing plant

Pinnacle Midstream LLC, Houston, has started engineering and construction on its grassroots 60-MMcfd Sierra Grande natural gas processing plant in the Delaware basin, about 9 miles west of Orla, Tex., in Culberson County.

The plant, which will offer full cryogenic recoveries with ethane-rejection capability, is scheduled for startup during this year’s fourth quarter, the company said.

The Sierra Grande plant comes as part of the operator’s strategy to become a lead provider of midstream services for Delaware basin producers in Texas’ Reeves and Culberson counties, said Greg Sargent, Pinnacle Midstream’s chief executive officer.

After completing the plant’s construction, the company said it already foresees a need to begin expanding processing capacity at the site to meet an overwhelming demand for additional capacity from regional producers.

Details regarding the future expansion plans, however, were not disclosed.

Regional operations

The Sierra Grande gas plant will join Pinnacle Midstream’s existing nearby operations, which include gas and crude gathering systems as well as its Sierra Grande CDP crude truck transloading facility, also in Culberson County.

Commissioned earlier in the year and designed to be rapidly expanded to accommodate customer needs, the operator’s CDP facility receives crude via truck and its associated crude gathering system from Reeves and Culberson counties for redelivery into Plains All American Pipeline LP's Avalon extension pipeline (OGJ Online, Feb. 5, 2015), Pinnacle Midstream said in a Mar. 23 release.

Pinnacle Midstream was formed in partnership with BP Energy Partners LLC, Dallas, a private equity firm founded in 2014 by T. Boone Pickens’ private markets investment team.

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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