Dynegy to build gas processing plant in Chico, Tex.

By the OGJ Online Staff

HOUSTON, Aug. 7 -- Dynegy Inc., Houston, plans to build a second natural gas processing facility in Chico, Tex., adjacent to its existing plant.

The 150-MMcfd facility will bring capacity at Chico to 250 MMcfd. Commercial operation will begin during the second quarter of 2002.

"The new plant is in response to processing opportunities resulting from increased drilling and production activity of the Barnett Shale formation in North Texas," said Dynegy.

The company said that through long-term contracts, it has the right to gather, compress, and process gas volumes from more than 100,000 acres in the Barnett Shale.

Dynegy owns interests in 26 other gas processing plants, including 16 that it operates, plus associated and stand-alone natural gas gathering systems. Most of the assets are in Texas, Louisiana, and New Mexico.

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