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DCP Midstream announces renewed long-term contract for new Zia II Permian plant

Published by , Digital Assistant Editor
Hydrocarbon Engineering,


DCP Midstream LLC has announced a 10-year renewal of a contract with one of the largest investment grade independent producers in the prolific Delaware basin, a sub-basin of the Permian. The contract has been converted from percentage of proceeds to 100% fee-based and covers approximately one million dedicated acres.

With the startup of the 200 million ft3/d Zia II natural gas plant in August, DCP Midstream now owns and operates an integrated system of five natural gas processing plants with approximately 650 million ft3/d of total capacity in the region. As the largest overall gas processor in the Permian basin, DCP Midstream is also one of the largest midstream operators in the developing Delaware basin.

“With the ramp-up of the Zia II plant and our recently completed Lea County extension to our Sand Hills Pipeline, we continue to provide much needed capacity and reliable takeaway for our customers in the Delaware basin, which is one of the most economic producing basins in the country,” said Wouter van Kempen, Chairman and CEO of DCP Midstream. “This one million acre renewal improves our contract portfolio mix by providing sustainable fee-based earnings with reduced overall commodity exposure.”

“This agreement is a great example of DCP Midstream partnering with our producers to create win-win scenarios in the current environment,” added Don Baldridge, President of Commercial for DCP Midstream.

Edited from press release by

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/14102015/dcp-midstream-announces-renewed-long-term-contract-for-new-zia-ii-permian-plant-1598/

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