DCP Midstream LLC will build the new Rawhide natural gas processing plant in the Permian basin to handle Wolfberry production. The facility will be located in Glasscock County, Texas, and have 75 million cubic feet per day of processing capacity. The project will include the construction of an associated low-pressure gathering system along with the expansion of its high-pressure gathering system in the region, including linking its Goldsmith/Fullerton super system with its Triad super system. The plant and the gathering systems are expected to be in operation by the middle of 2013.
“Our strategy is to keep pace with the growth from this new phase of oil-driven development in the Permian,” Wouter van Kempen, president of DCP Midstream’s gathering and processing business, said in a news release. “We are pleased to provide producers highly efficient processing and transportation solutions.”
This is the second phase of the company's expansion program in the Permian basin, following the construction of the Sand Hills Pipeline that will transport NGLs from the Permian to fractionation facilities along the Gulf Coast to Mont Belvieu. This pipeline is expected to come online in the summer of 2013.
The projects will increase DCP's footprint in the Permian to 17 processing plants with a capacity of 1.25 billion cubic feet per day and more than 135,000 barrels per day of NGLs.
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