DCP Midstream to expand Permian sour processing capacity

DCP Midstream LLC, Denver, will build a 200-MMcfd sour natural gas processing plant in Lea County, NM, to meet demand from growing Permian basin production, the company reported.

Included in the project will be associated gathering system expansions to for southeast New Mexico and West Texas.

In addition to the Zia II plant are front-end treating for sour gas, two acid-gas injection wells, a 50-mile, 20-in. high-pressure trunk line to intersect DCP Midstream’s existing New Mexico gathering system, and new high-pressure pipelines and compression in West Texas.

DCP said the project is to start up during first-half 2015.

The Zia II plant and gathering systems will increase DCP Midstream’s presence in the Permian, where it owns and operates 18 gas processing plants with total capacity of more than 1.3 bcfd and produces more than 130,000 b/d of NGLs.

The company’s investment in the Permian totals more than $1.7 billion in the past 3 years with the Rawhide plant and the Sand Hills NGL pipeline, according to Greg Smith, president of DCP Midstream’s Permian and North business units (OGJ Online, Feb. 15, 2012; Oct. 25, 2012).

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