DCP Midstream Adding Half a Bcf/D of Natural Gas Processing Capacity in Two Key U.S. Basins
PROCESSING CAPACITY IN TWO KEY U.S. BASINS
DENVER, Feb. 3, 2014 - Today, the DCP Midstream enterprise is announcing the addition of almost half a billion cubic feet per day (Bcf/d) of natural gas processing capacity in two of the most prolific, liquids-rich basins in the U.S.
In the DJ Basin, DCP Midstream is constructing the new 200 MMcf/d Lucerne 2 Plant.
Also in the DJ Basin, the recently started O'Connor Plant is increasing its throughput capacity from 110 MMcf/d to 160MMcf/d, up almost 50 percent. Both the Lucerne 2 and O'Connor plants are connecting to the Front Range NGL Pipeline, now in service.
In the Eagle Ford Shale, the 200 MMcf/d Goliad Plant is now in start-up.
DCP Midstream, LLC and its sponsored master limited partnership DCP Midstream Partners, LP (NYSE: DPM) together hold an industry leading position, processing about 12 percent of the nation's gas supply.
"We believe this is a business where size and scale matters, and as the nation's largest gas processor, largest natural gas liquids producer, and third-largest NGL pipeline operator, the potential around our footprint is tremendous. We are coming out of the gates fast in 2014," said Wouter van Kempen, chairman of the board, president and CEO of DCP Midstream, and chairman and CEO of DCP Midstream Partners.
Two developments in growing DJ Basin
As the Denver-Julesburg Basin's largest midstream operator, the DCP enterprise will have doubled its processing capacity to 800 million cubic feet per day (MMcf/d) once the Lucerne 2 Plant is operating. The Lucerne 2 Plant is the DCP enterprise's ninth and largest processing plant in the DJ Basin. The DCP Midstream-owned Lucerne 2 Plant is expected to go into service in the second quarter of 2015.
The Lucerne 2 Plant quickly follows the DPM-owned O'Connor Plant, which went into service four months ago with an initial capacity of 110 MMcf/d. The O'Connor Plant, which has been running full since start-up, will now begin to fill the 50 MMcf/d expansion bringing overall plant capacity to 160MMcf/d. Both plants are connecting to the Front Range Pipeline for natural gas liquids (NGL) takeaway to Mont Belvieu, Texas. DPM holds a one-third ownership interest in the pipeline.
Positioned in liquids-rich Eagle Ford Shale
DCP's Eagle Ford joint venture has assets positioned in the premium liquids-rich areas of the Eagle Ford Shale, where production continues to grow rapidly. The Eagle Ford joint venture is owned 80-percent by DPM and 20-percent by DCP Midstream. The DCP enterprise has processing capacity of 1.2 Bcf/d in the Eagle Ford Shale and is the basin's second-largest operator. The new Goliad Plant is the DCP enterprise's seventh plant in the Eagle Ford Shale, where 400 MMcf/d of processing capacity has been added in just the last year. The Goliad Plant is connected to the Sand Hills Pipeline for NGL takeaway to Mont Belvieu. The pipeline is a DCP Midstream joint venture with Phillips 66 and Spectra Energy.
These three projects lead a robust pipeline of opportunities around the DCP enterprise's geographically integrated footprint. Underpinning its ongoing growth strategy, the DCP enterprise has demonstrated strong project execution, putting projects into service on-time and on-budget.
For more information about the plants and pipelines mentioned in this release, visit http://www.dcpmidstream.com/newsroom/media-kits.
|MEDIA CONTACT:||Lisa Newkirk|
ABOUT DCP MIDSTREAM, LLC
DCP Midstream, LLC leads the midstream segment as the largest natural gas processor, the largest natural gas liquids producer and one of the largest marketers in the U.S. DCP Midstream operates in 18 states across major producing regions. The company is a 50:50 joint venture between Phillips 66 and Spectra Energy. It owns the general partner of DCP Midstream Partners, LP (NYSE: DPM), a master limited partnership, and provides operational and administrative support to the partnership. DCP Midstream is the largest oil and gas company and the largest private company in Denver, the city of its headquarters, and is the Top Company Winner for Energy/Natural Resources in Colorado as recognized by ColoradoBiz. For more information, visit the DCP Midstream website at www.dcpmidstream.com.
ABOUT DCP MIDSTREAM PARTNERS, LP
DCP Midstream Partners, LP (NYSE: DPM) is a midstream master limited partnership engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; producing, fractionating, transporting, storing and selling NGLs and condensate; and transporting, storing and selling propane in wholesale markets. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LP, which in turn is managed by its general partner, DCP Midstream GP, LLC, or the General Partner, which is wholly-owned by DCP Midstream, LLC, a joint venture between Phillips 66 and Spectra Energy. For more information, visit the DCP Midstream Partners, LP website at www.dcppartners.com.
This press release includes "forward-looking statements" as defined by the Securities and Exchange Commission. All statements, other than statements of historical fact, included herein that address activities, events, developments or transactions that DCP Midstream, LLC and DCP Midstream Partners, LP expect, believe or anticipate will or may occur in the future, including anticipated benefits and other aspects of such activities, events, developments or transactions, are forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially, including required approvals by regulatory agencies, the possibility that the anticipated benefits from such activities, events, developments or transactions cannot be fully realized, the possibility that costs or difficulties related thereto will be greater than expected, the impact of competition and other risk factors included in the reports filed with the Securities and Exchange Commission by DCP Midstream Partners, LP. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of their dates. We do not intend to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.