DCP Midstream Partners LP, Denver, will buy the 80-MMcfd Crossroads gas processing plant and associated gathering in Harrison County, Tex., from Penn Virginia Resource Partners LP, Radnor, Penn. The purchase price is about $63 million.
The Crossroads system includes about 8 miles of 8-12 in. gas gathering; about 20 miles of a 6-in. pipeline that delivers NGLs into the Panola pipeline and on to Mont Belvieu, Tex., for fractionation; and 50% in an 11-mile residue-gas pipeline.
The system will allow DCP Midstream to increase midstream services to producers that are expanding liquids-rich Haynesville shale and Cotton Valley drilling programs in East Texas, said the DCP announcement.
Oil & Gas Journal’s global gas processing survey as of Jan. 1, 2012, shows DCP Midstream’s total processing capacity at 1.7 bcfd and total NGL production in 2011 as nearly 2.4 million gpd (OGJ, May 7, 2012, p. 88).
Penn Virginia in 2011 operated 420 MMcfd total capacity at seven gas plants, it reported in February of this year, and is adding 120 MMcfd in 2012.