DCP Midstream signs LTA with Western Midstream Partners
08 August 2019
DCP Midstream, LP announced that it has signed a long-term agreement with Western Midstream Partners, LP that will provide DCP with up to 225 million cubic feet per day of incremental processing capacity at Western’s DJ Basin gas processing complex, which includes the Latham II plant that is presently under construction.
The facility will be well-integrated, with natural gas liquids takeaway via DCP’s DJ Southern Hills extension, as well as the Front Range pipeline, and residue gas takeaway via the Cheyenne Connector. This project will increase DCP’s total natural gas processing and bypass capacity in the DJ Basin to approximately 1.5 billion cubic feet per day.
“This is a very capital efficient opportunity that allows us to meet the commitments we have made to our customers to significantly expand our capacity in the DJ Basin by mid-2020. As we continue to strengthen our position as the premier, fully-integrated midstream service provider in the DJ Basin, this highly accretive project allows us to capitalize on full value chain economics and drive increased future cash flows. Additionally, with permits and land secured, we preserve the optionality to build future capacity via the Bighorn facility,” said Wouter van Kempen, president, chairman, and CEO of DCP Midstream.