DCP Midstream LLC plans to build a 110 million-cubic-feet-per-day natural-gas processing plant and high-pressure gathering system near La Salle.
The $270 million plant is expected to be operational by mid-2013 and will be about 6 miles east of La Salle.
DCP Midstream, in a news release Tuesday, said the new plant and gathering system will augment its position in the Denver-Julesburg Basin where it has seven natural-gas processing plants. The gathering-system expansion will include the capability to service producers in the Niobrara Shale development to the north and west of DCP’s existing facilities.
The La Salle plant is funded through DCP Midstream’s existing debt facilities and operating cash, said Bill Waldheim, president of the company’s northern business unit.
“The DJ Basin continues to reinvent itself, particularly with this new phase of oil-driven development,” Waldheim said in the news release.
“Our footprint in Weld County positions DCP Midstream well for the growth in horizontal Niobrara Shale activity around our existing footprint as well as potential new Niobrara projects,” he added.
DCP Midstream, based in Denver, is one of the nation’s three largest natural-gas gatherers and processors and is the largest natural-gas liquids producer as well as one of the largest marketers in the United States. The company operates in 18 states. It is a 50-50 joint venture between Spectra Energy and ConocoPhillips.
