A Houston-based energy company is building a $280 million natural-gas processing and distribution center near Meeker in western Colorado.
Enterprise Products Partners expects to complete work on the plant, which began in October, in mid-2007.
The company will operate the plant in Rio Blanco County and process and distribute gas for EnCana Oil & Gas and other providers.
“Our primary focus is exploration and production. This allows us to concentrate on our core competency,” said EnCana spokesman Doug Hock.
The company plans to ship liquids that will be separated from natural gas at the plant through interstate pipelines owned by Wyoming Interstate, TransColorado and Questar. The liquids will be converted into butane, propane and other fuels at other Enterprise facilities throughout the country.
Enterprise also will build a 55-mile pipeline that will run to the southwest and interconnect with the company’s Mid-America Pipeline system, which transports natural-gas liquids from the Rocky Mountain region to markets near Mont Belvieu, Texas, and Conway, Kan.
Enterprise plans to transport natural gas through the 1,323-mile Rockies Express, which will move gas from the Rockies to Ohio and is due to be finished by June 2009, said Mike Smith, Enterprise director of commercial development.
Natural-gas production in the area, called the Piceance Basin, has been increasing at a 20 percent annual growth rate over the past four years.
Rocky Mountain states are forecast to become the largest gas source in the U.S. this year, according to a recent U.S. Energy Department report.
Production in 2006 will be 4.18 trillion cubic feet in the Rockies, 4.11 trillion for Gulf of Mexico offshore and 4.11 trillion for the Gulf Coast onshore area, the agency forecast.
Staff writer Tom McGhee can be reached at 303-820-1671 or tmcghee@denverpost.com.
