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Two major natural gas developments were announced in the Permian Basin as fossil fuel market continued to recover from COVID-19 pandemic with oil prices crossing the $50 per barrel threshold for the first time since the health crisis began in early 2020.
In April 2020, just months after COVID-19 was discovered in the U.S., the resulting health crisis and travel and business restrictions led to an historic decline in fuel demand and the price of oil plummeted below $0 per barrel for the first time in history.
The market struggled to recover throughout the rest of the year, climbing to the $40 to $45 range but unable to cross the $50 per barrel mark most operators require to be profitable.
Pinnacle Midstream II to Build New Permian Gas Gathering System Anchored by DoublePoint
In addition to supporting the extensive multiwell pad development taking place in the Midland Basin, Pinnacle Midstream II said the gas gathering system, named Pinnacle Dos Picos, was designed with expansion in mind.
Hart Energy Staff
Thu, 12/17/2020 - 02:30 PM
Formed in early 2019, Pinnacle Midstream II is pursuing midstream opportunities across the Lower 48 with an initial focus on the Permian Basin and Eagle Ford Shale.
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Pinnacle Midstream II LLC recently unveiled plans to build a new natural gas gathering and compression system in the Midland Basin, which the Houston-based independent midstream company said is anchored by an agreement with DoublePoint Energy LLC.
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Pinnacle Midstream II, LLC (Pinnacle) has announced that the company has entered into a 15-year gas gathering, processing and purchase agreement with DoublePoint Energy, LLC (DoublePoint), pursuant to which DoublePoint agreed to dedicate certain of its leasehold acreage related to natural gas production to Pinnacle. The agreement anchors Pinnacle’s greenfield build of a new natural gas gathering and compression system in the Midland Basin.
The Pinnacle Dos Picos Gathering System is expected to come into service in 2Q21 and supports the extensive multiwell pad development taking place in the Midland Basin, one of the most prolific production areas in North America.
Pinnacle Midstream II Announces a New-Build Natural Gas Gathering and Compression System in the Prolific Midland Basin businesswire.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from businesswire.com Daily Mail and Mail on Sunday newspapers.