DCP Midstream Details 'Massive' Natural Gas Buildout in DJ, Permian Basins

---

Researched by Industrial Info Resources (Sugar Land, Texas)--DCP Midstream LP (NYSE:DCP) (Denver, Colorado) Chief Executive Officer Wouter van Kempen spoke this week of the company's "massive, massive" buildout of gas gathering, processing and takeaway capacity in Colorado's Denver-Julesburg (DJ) Basin as well as the Permian Basin in West Texas. Industrial Info is tracking more than $2.1 billion in DCP Midstream pipeline and production projects.

DCP Midstream reported net income of $62 million attributable to partners for first-quarter 2018, compared with $101 million in first-quarter 2017. At the same time, the company said it has continued to see record DJ Basin wellhead volumes as it drives to increase processing and bypass capacity in the basin by 1.5 billion cubic feet per day (Bcf/d).

Among other things, the company said it was accelerating the operational date of its $200 million Mewbourn Natural Gas Processing Plant Train #3 Addition in Colorado to August this year. The train will have a compressing capacity of 200 million standard cubic feet per day of natural gas, increasing the total plant capacity to 435 million standard cubic feet per day. Saulsbury Industries (Odessa, Texas) is performing the engineering, procurement and construction (EPC). For more information, see Industrial Info's project report.

DCP Midstream also has announced the acceleration of the $200 million O'Conner Natural Gas Processing Plant Phase II Expansion in Kersey, Colorado. Saulsbury also is performing EPC work on the 200 million-standard-cubic-foot-per-day expansion. For more information, see Industrial Info's project report.

On Monday, the company announced its Southern Hills natural gas liquids (NGL) pipeline will connect the DJ Basin to Cushing, Oklahoma, and beyond via the White Cliffs pipeline. SemGroup, the operator of the White Cliffs pipeline, plans to convert part of the pipeline system to NGL and interconnect with the Southern Hills pipeline, according to DCP.

In the Permian Basin, DCP Midstream said it completed its Sand Hills NGL pipeline expansion to 365,000 barrels per day (BBL/d) in the first quarter. Capacity is expected to ramp up to 485,000 BBL/d by the end of this year, according to the company. Industrial Info is tracking $300 million in project activity that is tied to the ongoing expansion. For more information on the expansion's $60 million NGL pump station in Rocksprings, Texas, see Industrial Info's project report.

Meanwhile, the Gulf Coast Express project, in which DCP Midstream holds a 25% interest, is close to being fully subscribed and is expected to be placed in service in fourth-quarter 2019, according to the company. The 1.92 billion cubic-foot-per-day natural gas pipeline will run from the Waha Hub near Coyanosa, Texas, to Rankin, Texas. Industrial Info is tracking $1.37 billion in project activity tied to the pipeline. For more information, see Industrial Info's project report.

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.