Piñon Midstream LLC has begun construction of a sour gas treating and carbon capture facility in Lea County, NM, that when completed in July would have capacity to treat about 85 MMcf/d of Permian Basin natural gas.


The plant, dubbed the Dark Horse Facility, would treat gas produced in the Permian’s Delaware sub-basin. The project is anchored by “a substantial long-term dedication” from Ameredev II LLC, a privately held independent exploration and production company active in the area.

Founded in December, Piñon aims “to provide a long-term, economic and environmentally responsible solution to the pervasive sour gas problem that has constrained development in the northeastern Delaware Basin,” the company said. 

The project includes a centralized amine treating...