DCP Midstream LLC is promoting a number of Midcontinent-focused projects currently under way that combined represent an investment of $2 billion. Among them is infrastructure development to provide natural gas liquids (NGL) takeaway capacity to Mont Belvieu, TX.
"These projects increase our reach and flexibility in the Midcontinent, with special focus on liquids-rich production in the Granite Wash, Woodford Cana, Tonkawa, Marmaton, Cleveland and Mississippi Lime plays," said Wouter van Kempen, president of DCP Midstream's gathering and processing business unit. "We are working with our producers in the area with long-term dedications and providing our producers with full-value chain service to meet their exciting growth opportunities."
The company is upgrading its National Helium Plant in Liberal, KS, for deep-cut NGL extraction. The plant is capable of processing more than 600 MMcf/d of liquids-rich gas. DCP also is increasing the interconnectivity of National Helium with its gathering and processing systems in the Texas Panhandle and central Oklahoma to allow the further reroute of gas among multiple processing facilities and residue/NGL outlets.
The company's gas gathering infrastructure in the Texas and Oklahoma panhandle areas and western Oklahoma is being extended to accommodate more than 250 MMcf/d of liquids-rich gas in the Granite Wash, Woodford Cana, Tonkawa, Marmaton and Cleveland plays. DCP recently secured long-term, large acreage dedications in these plays and continues to seek additional growth opportunities, it said.
And DCP is constructing grassroots gathering systems in the western and eastern Mississippi Lime play to meet the needs of multiple producers that have dedicated up to 1 million acres of land to DCP.
The previously announced Southern Hills Pipeline is proceeding on plan with an expected in-service date in mid-2013 and a target capacity of more than 150,000 b/d (see Shale Daily, June 10, 2011). Southern Hills will extend to the northwest to connect National Helium Plant as well as multiple other DCP-owned and third-party gas processing plants and provide producers connectivity to the Mont Belvieu market.
"DCP Midstream has numerous growth opportunities derived from the strength and scale of our asset portfolio and our substantial footprint," said CEO Tom O'Connor. "We have positioned DCP for continued growth with more than $4 billion of growth projects in flight, including new gas processing plants in liquids-rich areas and two NGL pipelines that will transform markets, and another $2 billion in development."