Pinnacle Midstream LLC has started engineering and construction on its 60 MMcf/d Sierra Grande Gas Processing Plant in the Permian Basin, the company said on June 12.

The cryogenic gas plant, about 9 miles West of Orla, Texas, will offer full cryogenic recoveries with ethane rejection capability. Pinnacle said it anticipates expanding the facility’s capacity as gas processing demand in Culberson and Reeves counties continues to ramp up.

The plant, which is expected to start up in fourth-quarter 2017, will join Pinnacle’s other operations in the area, which include natural gas gathering and crude gathering systems and a crude oil transloading terminal.

“The installation of the Sierra Grande Processing Plant is just one more step in Pinnacle’s plan to be a full-service provider of midstream services in the Delaware Basin,” said Pinnacle’s founder and CEO, Greg Sargent, in a statement. “We believe that Pinnacle can be a ‘one stop shop’ for the Culberson and Reeves county producer. This will allow Pinnacle to lay all necessary pipelines to the individual well in order for the producer to begin production without the addition of any trucks to the area, thus improving on production run time and reducing the possibility of accidents or spills.”