DCP Midstream plans gas plant, gathering for Permian basin

By OGJ editors

DCP Midstream LLC, Denver, will build a 75-MMcfd natural gas processing plant, dubbed the Rawhide plant, in Glasscock County, Tex., along with associated low-pressure gathering to handle Wolfberry production in Permian basin, the company announced today.

As part of the project, DCP also plans to expand its high-pressure gathering system to link its Goldsmith-Fullerton system with its Triad system. The Rawhide plant and gathering systems are to be in operation by mid-2013.

“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.

The Rawhide processing plant is the second phase of DCP’s expansion for the liquids-rich Permian. That expansion began with plans to build the Sand Hills NGL pipeline that will move liquids from the Permian to fractionation along the Texas Gulf Coast and the Mont Belvieu, Tex., market hub by summer 2013 (OGJ Online, June 13, 2011). The expansion could also include construction of additional processing in the region if producer drilling continues to accelerate, said the announcement.

The plant and the gathering systems will expand DCP’s footprint in the Permian, where it already owns and operates 17 processing plants with total capacity of 1.25 bcfd and produces more than 135,000 b/d of NGLs.

DCP Midstream LLC is a 50/50 joint venture between Spectra Energy and ConocoPhillips.

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