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DCP Midstream to build New Mexico plant

DCP Midstream is constructing a sour natural gas processing plant in New Mexico.
DCP Midstream to build New Mexico plant

DCP Midstream will construct a 200 MMcf/d sour natural gas processing plant, the Zia II Plant, in Lea County, New Mexico, with associated gathering system expansions to serve producers in the Permian Basin in both Southeast New Mexico and West Texas.

“Our continued investment in the Permian totals over US$1.7 billion in the past three years with the Rawhide Plant and the Sand Hills NGL pipeline, both of which went into service recently,” says Greg Smith, president of DCP Midstream’s Permian and Midcontinent business units. “This project will succeed in significantly increasing our gathering and processing capacity in this area and greatly improve our overall system reliability.”

In addition to the Zia II Plant, the project includes front-end treating for sour gas, two acid gas injection wells, a 50mi, 20in high-pressure trunk line that will intersect DCP Midstream’s existing New Mexico gathering system, and new high-pressure pipelines and compression in West Texas. The project is expected to be in commercial operation during 1H 2015.

The Zia II Plant and new gathering systems will augment DCP Midstream’s existing footprint in the Permian Basin, where the company owns and operates 18 gas processing plants with a capacity of more than 1.3 Bcf/d and produces in excess of 130,000 b/d of natural gas liquids.

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