Pinnacle Midstream II LLC on Wednesday sanctioned a 200 MMcf/d natural gas processing facility in the Permian Basin of West Texas.

The company said it would move ahead with the plant as part of the second phase of its Dos Picos natural gas gathering system that came online in the first quarter of this year to serve producers in the Midland sub-basin. The plant would also include a nitrogen rejection unit and could be expanded if demand warrants it. 

The processing facility, which is expected to start operations in 2Q2022, would be located in Midland County. Pinnacle’s 50-mile, 16-inch diameter system is designed to support high-intensity pad development, which the company expects to accelerate this year as commodity prices strengthen. The system is anchored by long-term...