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Project(s): View 5 related projects in PECWeb
Plant(s): View 4 related plants in PECWeb
Released May 08, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--DCP Midstream LP (NYSE:DCP) (Denver, Colorado) is expanding its midstream footprint, continuing to add capacity at its natural gas processing plants and on its pipelines. The growth has increased the company's quarterly net income, which rose to $75 million in first-quarter 2019, compared with $62 million in first-quarter 2018. Industrial Info is tracking more than $2.5 billion in active projects involving DCP.
In the company's earnings conference call, DCP Chief Executive Officer Wouter van Kempen said, "Throughout our asset base, [the] ability to leverage full value-chain economics from the wellheads of the Permian, the DJ Basin, the Mid-continent and the Eagle Ford all the way to the Gulf Coast markets enhances our competitive advantage and drives strong long-term cash flows. All in all, our footprint, our strategy and our balance sheet allows us to pick low-risk, high-return projects in the country's top-tier basins, thereby creating a distinct strategic advantage for our company, our customers and our unit holders."
Van Kempen gave updates on some of the company's ongoing projects, beginning with the DCP's O'Connor 2 natural gas processing plant in Weld County, Colorado. Van Kempen said, "We remain on target to put the O'Connor 2 plant into service at the end of the second quarter, with volumes gradually ramping throughout the second half of 2019." Construction on O'Connor 2 began last summer, with Saulsbury Industries (Odessa, Texas) providing engineering, procurement and construction. The facility will add 200 million cubic feet per day of processing capacity, bringing total plant capacity to 360 million cubic feet per day. For more information, see Industrial Info's project report.
Van Kempen also spoke about the Gulf Coast Express (GCX) Pipeline, a joint venture with Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) and Targa Resources (NYSE:TRGP) (Houston). The pipeline will run from the Permian Basin to the Texas Gulf Coast. Van Kempen said, "The Gulf Coast Express Pipeline is progressing well, as construction on the mainline and associated compression is on track to have the asset in service in October of this year. The fully subscribed GCX Pipeline will transport about 2 billion cubic feet of natural gas takeaway per day in the Permian." Construction on the $1.7 billion project began earlier this year. For more information, see Industrial Info's project reports on Spread 1, Spread 2, and spreads 3 and 4.
Among the company's other projects planned to enter service this year is the Cheyenne Connector Pipeline in Colorado, which it is developing with Tallgrass Energy Partners (NYSE:TEP) (Leawood, Kansas). The pipeline will carry up to 600 million cubic feet per day of natural gas from DJ Basin production areas to Tallgrass' Rockies Express Pipeline. For more information, see Industrial Info's project report.
When questioned about the planned Big Horn natural gas processing project, van Kempen said Weld County, home to the project, was being very supportive. He said, "I feel very confident we will add additional processing capacity for our producer customers in the middle of 2020, and I think we will probably have a final decision on what exactly it will look like in the next couple of months." The Big Horn cryogenic processing plant would have an initial capacity 200 million cubic feet per day. Construction could begin later this year, for completion in mid-2020. 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.
In the company's earnings conference call, DCP Chief Executive Officer Wouter van Kempen said, "Throughout our asset base, [the] ability to leverage full value-chain economics from the wellheads of the Permian, the DJ Basin, the Mid-continent and the Eagle Ford all the way to the Gulf Coast markets enhances our competitive advantage and drives strong long-term cash flows. All in all, our footprint, our strategy and our balance sheet allows us to pick low-risk, high-return projects in the country's top-tier basins, thereby creating a distinct strategic advantage for our company, our customers and our unit holders."
Van Kempen gave updates on some of the company's ongoing projects, beginning with the DCP's O'Connor 2 natural gas processing plant in Weld County, Colorado. Van Kempen said, "We remain on target to put the O'Connor 2 plant into service at the end of the second quarter, with volumes gradually ramping throughout the second half of 2019." Construction on O'Connor 2 began last summer, with Saulsbury Industries (Odessa, Texas) providing engineering, procurement and construction. The facility will add 200 million cubic feet per day of processing capacity, bringing total plant capacity to 360 million cubic feet per day. For more information, see Industrial Info's project report.
Van Kempen also spoke about the Gulf Coast Express (GCX) Pipeline, a joint venture with Kinder Morgan Incorporated (NYSE:KMI) (Houston, Texas) and Targa Resources (NYSE:TRGP) (Houston). The pipeline will run from the Permian Basin to the Texas Gulf Coast. Van Kempen said, "The Gulf Coast Express Pipeline is progressing well, as construction on the mainline and associated compression is on track to have the asset in service in October of this year. The fully subscribed GCX Pipeline will transport about 2 billion cubic feet of natural gas takeaway per day in the Permian." Construction on the $1.7 billion project began earlier this year. For more information, see Industrial Info's project reports on Spread 1, Spread 2, and spreads 3 and 4.
Among the company's other projects planned to enter service this year is the Cheyenne Connector Pipeline in Colorado, which it is developing with Tallgrass Energy Partners (NYSE:TEP) (Leawood, Kansas). The pipeline will carry up to 600 million cubic feet per day of natural gas from DJ Basin production areas to Tallgrass' Rockies Express Pipeline. For more information, see Industrial Info's project report.
When questioned about the planned Big Horn natural gas processing project, van Kempen said Weld County, home to the project, was being very supportive. He said, "I feel very confident we will add additional processing capacity for our producer customers in the middle of 2020, and I think we will probably have a final decision on what exactly it will look like in the next couple of months." The Big Horn cryogenic processing plant would have an initial capacity 200 million cubic feet per day. Construction could begin later this year, for completion in mid-2020. 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.
