15-02-2012
DCP Midstream announces new processing plant and gathering systems in Permian Basin
DCP Midstream LLC today announces that it will build a 75 MMcf/d natural gas processing plant in Glasscock County, Texas, and associated low-pressure gathering system to service producers focused on Wolfberry production in the West Texas region of the Permian Basin. DCP will also expand its high-pressure gathering system as part of the project, linking its Goldsmith/Fullerton super system with its Triad super system.
“Our strategy is to keep pace with the growth from this new phase of oil-driven development in the Permian,” said Wouter van Kempen, president of DCP Midstream’s gathering and processing business. “We are pleased to provide producers highly efficient processing and transportation solutions.”
The Rawhide Plant and the gathering systems will optimize DCP’s Permian super systems and are expected to be in commercial operation by the middle of 2013.
The new processing plant is the second phase of DCP’s multiphase expansion program for the liquids-rich Permian. The expansion program began with the commitment to build the Sand Hills Pipeline, a major, new NGL pipeline that will provide takeaway service from the Permian to fractionation facilities along the Texas Gulf Coast and to the Mont Belvieu,Texas, market hub by the summer of 2013. The expansion program could also include construction of additional processing facilities in the region if producer drilling continues to accelerate.
The Rawhide Plant and the gathering systems will augment DCP’s existing footprint in the Permian, where the company owns and operates 17 processing plants with a capacity of 1.25 Bcf/d and produces in excess of 135 Mbbl/d of NGLs.
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