DCP Midstream today announced it would build a 200 MMcf/d sour natural gas processing plant in Lea County, N.M., to serve producers in the Permian Basin. In addition to the Zia II Plant, the project will include front-end treating for sour gas, two acid gas injection wells, a 50-mile high-pressure trunk line and high-pressure lines and compression in West Texas. DCP expects commercial operation to kick off in the first half of 2015.
A recent production revival has made the Permian one of the nation’s fastest growing shale plays. DCP has poured $1.7 billion into the region over the past three years. It owns and operates 18 Permian gas processing plants with a combined capacity of more than 1.3 Bcf/d.
