DCP Midstream to double capacity in Denver-Julesburg basin

By OGJ editors

DCP Midstream LLC, Denver, will double its processing capacity in the Denver-Julesburg basin by yearend 2014, the company reported.

It recently began building the 110-MMcfd LaSalle gas plant, west of LaSalle in Weld County. Completion targets second-half 2013 in coordination with start-up of the 435-mile Front Range NGL pipeline (OGJ Online, Apr. 12, 2012).

DCP also is building two compressor stations—one to the north and one to the west of the LaSalle plant—as well as an associated gathering system, all of which are to be in service by second-half 2013. The company also plans to reconfigure some of LaSalle’s operations and equipment to increase plant throughput to 160 MMcfd and processing capacity by 50 MMcfd.

DCP expects to complete this work at LaSalle in second-half 2013, once it receives the necessary air permit.

As with the other projects DCP is implementing, the LaSalle project will improve DCP’s ability to move gas through the Denver-Julesburg basin to market, it said.

In addition, DCP last month received a revised Colorado air permit enabling operation of the Mewbourn II gas plant, west of Platteville in Weld County, at its full design capacity of 160 MMcfd, effectively increasing operational throughput in the plant by 35 MMcfd this summer.

DCP has recently filed for a permit to build and operate the Lucerne II gas plant, northeast of Greeley in Weld County, with a maximum capacity of 230 MMcfd, and separate additional gathering system improvements including up to four compressor stations, with estimated in-service by late 2014.

In addition to processing capacity, DCP will improve reliability by extending high-pressure gathering connected to its processing plants. The company said that in Weld County it is creating a “super system,” or a broad network of gathering and processing that increases flexibility, which enables DCP to “optimize” its processing capacity.

In total, DCP will increase gathering and processing assets in the DJ basin to nine natural gas processing plants with total capacity of 800 MMcfd and NGL production of 70,000 b/d.

The Front Range Pipeline will also provide connectivity to Mont Belvieu, Tex. DCP, Enterprise Products Partners, and Anadarko Petroleum are building the interstate NGL pipeline that will originate in Weld County. Initial capacity on Front Range is to be about 150,000 b/d, which can be expanded to about 230,000 b/d.

Connectivity to Mont Belvieu includes transportation via the recently announced Texas Express pipeline, in which DCP Midstream has acquired 10% ownership (OGJ Online, Mar. 6, 2012). Texas Express is to be completed by second-quarter 2013 and Front Range by fourth-quarter 2013.

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