DCP Midstream, a joint venture between Spectra Energy and ConocoPhillips, will build a new natural gas processing plant and associated low-pressure gathering system in Texas, US.

The gas processing facility, in Glasscock County, will have a capacity of 75 million cubic feet per day (mmcf/d) and will serve producers focused on Wolfberry production in the West Texas region of the Permian Basin.

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As part of the project, the oil and gas company is also expanding its high-pressure gathering system to link its Goldsmith/Fullerton super system with the Triad super system.

The new Rawhide facility is the second phase of the company’s multiphase expansion programme for the Permian Basin.

This plant and the gathering systems will commence commercial operation by mid-2013.

DCP Midstream’s gathering and processing business president Wouter van Kempen said: "Our strategy is to keep pace with the growth from this new phase of oil-driven development in the Permian."

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The company started the expansion programme for the Permian Basin with the intention to construct the Sand Hills NGL pipeline.

This new pipeline system will transport liquids from the Permian Basin to various fractionation facilities along the Texas Gulf Coast and to the Mont Belvieu market hub in Texas by the summer of 2013.