DCP Midstream to construct a new sour gas processing plant

DCP Midstream, LLC has announced capital investments that will support the need by producers for further infrastructure in the rapidly expanding Permian Basin. DCP Midstream will construct a 200 million ft³/d sour natural gas processing plant, Zia II plant, in Lea County, New Mexico, with associated gathering system expansions to service producers in both the southeast New Mexico and west Texas regions of the Permian Basin.

“Our continued investment in the Permian totals over US$ 1.7 billion in the past three years with the Rawhide plant and the Sand Hills NGL pipeline, both of which went into service recently,” said Greg Smith, President of DCP Midstream’s Permian and North business units. “This project will succeed in significantly increasing our gathering and processing capacity in this area and greatly improve our overall system reliability.”

In addition to the Zia II plant, the project includes front end treating for sour gas, two acid gas injection wells, a 50 mile, 20 in. high pressure trunk line that will intersect DCP Midstream’s existing New Mexico gathering system, and new high pressure pipelines and compression system in west Texas. The project is expected to be in commercial operation during the first half of 2015.

The Zia II plant and new gathering systems will augment DCP Midstream’s existing footprint in the Permian Basin, where the company owns and operates 18 gas processing plants with a capacity of more than 1.3 billion ft³/d and produces in excess of 130 000 bbls/d of natural gas liquids.

Adapted from press release by Rosalie Starling

Read the article online at: https://www.worldpipelines.com/business-news/20032014/dcp_midstream_to_construct_a_new_sour_gas_processing_plant_in_the_permian_basin_160/