DCP Midstream to Expand Mewbourn Natural Gas Processing Plant in Colorado

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Researched by Industrial Info Resources (Sugar Land, Texas)--DCP Midstream LLC (DPC) (Denver, Colorado), a joint-venture company of Spectra Energy Corporation (NYSE:SE) (Houston, Texas) and ConocoPhillips (NYSE:COP) (Houston, Texas), is planning to expand the natural gas processing capacity of its Mewbourn gas plant located near Gilcrest, Colorado. DCP is evaluating the possibility of either constructing a new natural gas processing train at the plant and doubling its capacity to 150 million cubic feet per day (mmcfd) or constructing a new 125-mmcfd natural gas processing plant to replace the existing Mewbourn plant.

DCP expects to make a decision in the third quarter of 2008. Whatever shape the proposal takes, the gas processing and natural gas liquids production facility will cost DCP more than $100 million. The figure is quite a chunk of the company's special projects budget, which is expected to be more than $700 million for 2009.

If the project is approved, the company expects to begin construction activities at the Mewbourn plant site in spring 2009. The project could be completed and put in service by late 2010 or early 2011.

DCP is currently upgrading the Mewbourn plant and adding 10 mmcfd of processing capacity to bring the plant's total capacity to 75 mmcfd. Construction began in the spring of this year and is expected to be completed by the fourth quarter of 2008. As a part of the expansion, DCP will install compressor packages with one L7042 Waukesha engine and one G3406 Caterpillar (NYSE:CAT) (Peoria, Illinois), as well as Ariel compressors. DCP awarded the engineering contract to Zap Engineering & Construction Services (Lakewood, Colorado) and the construction contract for the current the construction work at Mewbourn to Hettinger Welding LLC.

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