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Released August 09, 2018 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--DCP Midstream LP (NYSE:DCP) (Denver, Colorado) recently gave an update on its current project activities, marking an important milestone passed earlier this month. The company's projects include the construction of gas processing projects in Colorado's Denver-Julesburg (DJ) Basin and pipeline takeaway in the Permian Basin of Texas. Including joint ventures, Industrial Info is tracking more than $3.7 billion in projects belonging to DCP.
In a conference call, DCP Chief Executive Officer Werner van Kempen provided an update on recent highlights of the company. Van Kempen said, "We continue to see tremendous opportunity in the DJ Basin and have strengthened our position by bringing the 200 million-cubic-feet-a-day Mewbourn 3 plant online just last week. Within the basin, Mewbourn 3 is our tenth plant, increasing our total capacity to over 1 Bcf [billion cubic feet] a day." Construction on the third train at Mewbourn began in summer 2017 and brings the Mewbourn facility's total processing capacity to 435 million cubic feet per day. Saulsbury Industries (Odessa, Texas) provided engineering, procurement and construction (EPC) on the project, which had an estimated total investment value (TIV) of $200 million. For more information, see Industrial Info's project report.
Van Kempen said, "Looking to the future, construction is currently underway on our O'Connor 2 plant, which is expected to be in service in the second quarter of 2019, with a capacity of 300 million a day, including up to a 100 million-a-day bypass. Construction on the second train at the plant began this summer, with Saulsbury Industries also performing EPC. The project has an estimated TIV of $200 million. For more information, see Industrial Info's project report.
Van Kempen said DCP is the early planning phase for a potential twelfth plant in the DJ Basin, known as the Big Horn plant. "Inclusive of Big Horn, our total future capacity in the DJ Basin will be approximately 2.3 Bcf/d, which is more than double our current capacity," said van Kempen.
Van Kempen also spoke about the company's pipeline projects: "In the Permian, Sand Hills Pipeline capacity ramped up to 425,000 barrels per day (BBL/d) three months in advance of expectations, and the Gulf Coast Express gas takeaway pipeline is now fully subscribed." The Sand Hills natural gas liquids pipeline runs from the Permian and Eagle Ford Shale to Mont Belvieu, Texas. The pipeline is a joint venture with Phillips 66 (NYSE:PSX) (Houston, Texas) and Spectra Energy Partners (NYSE:SEP) (Houston). DCP is in the early planning stages to ramp up capacity to up to 550,000 BBL/d next year by laying approximately 600 miles of 20-inch-diameter pipeline loops. The project could kick off early next year for completion in the fourth quarter. For more information, see Industrial Info's project report.
The Gulf Coast Express natural gas pipeline is a joint venture of DCP, Kinder Morgan Incorporated (NYSE:KMI) (Houston) and Targa Resources Corporation (NYSE:TRGP) (Houston) that will run from the Permian to the Agua Dulce, Texas, area. The pipeline will carry up to 1.98 Bcf/d. Construction on the project, which has a TIV of $1.7 billion, is expected to begin in the fourth quarter and take about a year to complete. Troy Construction LLC (Houston) is the general contractor. For more information, see Industrial Info's project reports on Spread 1, Spread 2 and spreads 3 and 4.
While not discussed in the conference call, DCP has plans to expand its gas processing capacity in Texas. Among these projects is the expansion of the Eagle cryogenic natural gas processing complex in Edna, Texas. The project would increase the plant's capacity from 200 million to 400 million cubic feet per day. The facility will use technology provided by Honeywell UOP Russell LLC (Tulsa, Oklahoma). Construction could begin in the second half of next year for completion in early 2020. For more information, see Industrial Info's project report.
DCP reported second-quarter 2018 net income of $61 million, compared with $88 million in second-quarter 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
In a conference call, DCP Chief Executive Officer Werner van Kempen provided an update on recent highlights of the company. Van Kempen said, "We continue to see tremendous opportunity in the DJ Basin and have strengthened our position by bringing the 200 million-cubic-feet-a-day Mewbourn 3 plant online just last week. Within the basin, Mewbourn 3 is our tenth plant, increasing our total capacity to over 1 Bcf [billion cubic feet] a day." Construction on the third train at Mewbourn began in summer 2017 and brings the Mewbourn facility's total processing capacity to 435 million cubic feet per day. Saulsbury Industries (Odessa, Texas) provided engineering, procurement and construction (EPC) on the project, which had an estimated total investment value (TIV) of $200 million. For more information, see Industrial Info's project report.
Van Kempen said, "Looking to the future, construction is currently underway on our O'Connor 2 plant, which is expected to be in service in the second quarter of 2019, with a capacity of 300 million a day, including up to a 100 million-a-day bypass. Construction on the second train at the plant began this summer, with Saulsbury Industries also performing EPC. The project has an estimated TIV of $200 million. For more information, see Industrial Info's project report.
Van Kempen said DCP is the early planning phase for a potential twelfth plant in the DJ Basin, known as the Big Horn plant. "Inclusive of Big Horn, our total future capacity in the DJ Basin will be approximately 2.3 Bcf/d, which is more than double our current capacity," said van Kempen.
Van Kempen also spoke about the company's pipeline projects: "In the Permian, Sand Hills Pipeline capacity ramped up to 425,000 barrels per day (BBL/d) three months in advance of expectations, and the Gulf Coast Express gas takeaway pipeline is now fully subscribed." The Sand Hills natural gas liquids pipeline runs from the Permian and Eagle Ford Shale to Mont Belvieu, Texas. The pipeline is a joint venture with Phillips 66 (NYSE:PSX) (Houston, Texas) and Spectra Energy Partners (NYSE:SEP) (Houston). DCP is in the early planning stages to ramp up capacity to up to 550,000 BBL/d next year by laying approximately 600 miles of 20-inch-diameter pipeline loops. The project could kick off early next year for completion in the fourth quarter. For more information, see Industrial Info's project report.
The Gulf Coast Express natural gas pipeline is a joint venture of DCP, Kinder Morgan Incorporated (NYSE:KMI) (Houston) and Targa Resources Corporation (NYSE:TRGP) (Houston) that will run from the Permian to the Agua Dulce, Texas, area. The pipeline will carry up to 1.98 Bcf/d. Construction on the project, which has a TIV of $1.7 billion, is expected to begin in the fourth quarter and take about a year to complete. Troy Construction LLC (Houston) is the general contractor. For more information, see Industrial Info's project reports on Spread 1, Spread 2 and spreads 3 and 4.
While not discussed in the conference call, DCP has plans to expand its gas processing capacity in Texas. Among these projects is the expansion of the Eagle cryogenic natural gas processing complex in Edna, Texas. The project would increase the plant's capacity from 200 million to 400 million cubic feet per day. The facility will use technology provided by Honeywell UOP Russell LLC (Tulsa, Oklahoma). Construction could begin in the second half of next year for completion in early 2020. For more information, see Industrial Info's project report.
DCP reported second-quarter 2018 net income of $61 million, compared with $88 million in second-quarter 2017.
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com.
