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Last updated on April 18, 2014 at 9:47 EDT

DCP Midstream to Expand Gas Infrastructure in Western Colorado

August 27, 2008

DCP Midstream Partners has announced that Collbran Valley Gas Gathering has entered into definitive agreements to invest approximately $150 million over a multi-year period to construct approximately 20 miles of 24-inch diameter gathering pipeline, compression and liquids handling facilities in western Colorado, to support the growing natural gas production in the area.

The gathering system will have throughput capacity of over 600 million cubic feet per day (mmcf/d) and is supported by long-term acreage dedications from Plains Exploration & Production (PXP) and Delta Petroleum; and a long-term dedication from a subsidiary of Enterprise Products Partners, covering gas it has the right to gather from a specified area within the Piceance Basin. PXP CV Pipeline, a 50% subsidiary of PXP; and Delta own 25% and 5% of Collbran Valley Gas Gathering (CVGG), respectively.

CVGG will invest approximately $100 million in 2008-09 to achieve throughput capacity of approximately 300mmcf/d by the second quarter of 2009. The remaining investment in primarily compression equipment of approximately $50 million will be spent in 2010-13 as production volumes increase, providing total throughput capacity in excess of 600mmcf/d.

Mark Borer, president and CEO of DCP Midstream Partners, said: “This expansion, which we first announced earlier this month, provides critical midstream infrastructure to serve the needs of Collbran Valley producers and a platform for our continued growth in the Piceance.”