Back in 2020, Houston-based Piñon Midstream set out to cure a massive headache for producers in Perm Town’s most prolific eastern flank of the Delaware in N.M., and Texas—namely, the lack of infrastructure to gather and treat pervasive sour gas. Solving that problem would no doubt be a grand introduction into the nation’s hottest play. Solving another would be even grander. So, in 2021, Piñon unveiled two of three plants comprising its Dark Horse sour gas treating and CCS facility in Lea County, N.M. At the time, Dark Horse offered amine treating capacity of 170 MMCFD, the state’s largest and deepest acid gas injection well, and CO2 and H2S capture and sequestration. Expansions would continue over the years. And at least one of the Big Five midstream operators was closely watching.

Reese Energy Consulting today is following the latest news from Houston-based Enterprise Products, which has found a red-carpet entry into this slice of the Delaware with a $950 million acquisition of Piñon Midstream. This, Enterprise says, saves the company three to four years building out itself. Pinion’s Dark Horse is the largest facility of its kind in N.M., sitting fat and happy in an area where drilling has been largely restricted due to the lack of sour gas treating and acid gas injection capacity. And where more than 7,500 remaining well locations wait to be loved.

The deal with Piñon includes 50 miles of gathering and redelivery pipe, five 3-stage compressor stations, two of the Delaware’s highest capacity and deepest acid injection wells at 18,000’, and 270 MMCFD of H2S and CO2 treating facilities. Expansions to 450 MMCFD are slated for completion next year. Enterprise reports adding a third injection well to increase capacity to 750 MMCFD.