DCP Midstream, LLC announced that it will combine with DCP Midstream Partners, LP, simplifying the corporate structure and creating one of the largest natural gas liquids (NGL) producer and gas processor in the US. The combined company, to be named DCP Midstream, LP, will have an enterprise value of USD $11 billion.
The combined company plans to expand projects in the DJ Basin to increase local processing capacity by 50 per cent to 1.2 Bcf/d by 2019. The 200 MMcf/d Mewbourn 3 cryogenic natural gas processing plant is planned to be in-service in late 2018 and a second 200 MMcf/d plant is planned to be built in 2019.
The company also plans to increase NGL takeaway capacity by 30 per cent on its Sand Hills Pipeline at the end of 2017 to meet production growth from owned and third party plants in the Delaware, Southeastern New Mexico and the Cline Shale of West Texas.