While many other producing regions are struggling just to maintain production levels, the Rocky Mountain region continues to see incremental growth, prompting gathering and processing expansions last week by Williams and Duke. Williams completed a $45 million gathering and processing system upgrade in Wamsutter, WY, that will boost processing capacity by 140 MMcf/d and add 70 MMcf/d of gathering. Meanwhile, Duke Energy Field Services completed its third expansion in the Denver-Julesburg (D-J) Basin, adding a new 33 MMcf/d processing plant northeast of Denver.

The Williams project included the addition of a third cryogenic gas processing unit at the Echo Springs natural gas plant, boosting capacity by about 140 MMcf/d to 390 MMcf/d and liquids extraction from 18,000 b/d to 28,000 b/d. Williams also expanded the pipeline gathering system that brings natural gas into the plant for processing. Capacity on the system was increased from 330 MMcf/d to roughly 400 MMcf/d.

“Natural gas production continues to increase rapidly in Wyoming thanks to record drilling efforts last year,” said Mac Hummel, who directs Williams’ midstream business in the Rockies. “Our project is an important investment because it allows us to stay ahead of the overwhelming demand for gathering and processing services in the area and provides a new source of immediate cash flow for our investors.”

Installation of the new cryogenic unit began in April 2001 and was completed in early November by Pro-Quip Corp. of Tulsa. Williams concluded startup operations in late December and is already utilizing in excess of 80% of the new processing capacity.

Duke Energy Field Services (DEFS) said it has placed its new Platteville natural gas processing plant, located northeast of Denver, into service. It will have an initial capacity of 33 MMcf/d and is expandable to 50 MMcf/d with additional inlet compression. The plant will facilitate additional oil and gas production growth in the D-J Basin from DEFS customers.

The processing expansion represents the third major expansion of capacity in the last three years in the area and increases DEFS capacity to more than 240 MMcf/d. DEFS presently owns and operates seven plants and more than 2,200 miles of gas gathering lines in the area.

“The D-J Basin area continues to see production growth and high levels of producer activity despite the volatile commodity price environment we have experienced over the past year,” said Michael J. Bradley, senior vice president at DEFS. “Even with our having added 60 MMcf/d of incremental processing capacity in the area over the past two years, all of our plants were running at or near their full capacities, necessitating the new Platteville plant to meet the needs of our customers.”

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