DJ Basin Gas Pipeline System to Be Expanded

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Sterling Energy Investments announced it plans to expand the processing capacity and associated natural gas gathering pipeline infrastructure of its Centennial System in the northeastern DJ Basin to 220 MMcf/d to accommodate growing producer demand.

In addition, the company said it will increase the capacity at its existing Centennial Gas Processing Plant by up to 120 MMcf/d. Permitting for this project is underway, with it expected to be placed in service during the second half of 2019.

Sterling’s Centennial System includes more than 450 miles of low-pressure gathering pipeline, spanning Weld, Morgan, and Logan Counties in Colorado and Cheyenne County in Nebraska. It also consists of three interconnected natural gas processing plants, wiith each plant connected to a different downstream residue gas market to provide flow assurance for area producers. Residue gas takeaway is provided by Cheyenne Plains, Tallgrass Interstate Gas Transmission, and Southern Star pipelines. NGL takeaway is provided by Overland Pass Pipeline.

As part of its investment in natural gas gathering and processing infrastructure in the DJ Basin, Sterling also recently finished the first phase of the expansion of its existing Jackson Lake Processing Plant and expects to complete the entire project during 4Q 2018.

We are excited to offer DJ producers a full slate of midstream services: low-pressure gas gathering service, gas processing at multiple plants, condensate stabilization, a significant and reliable non-tributary water source and water distribution infrastructure, produced water gathering, produced water recycling and reuse, and crude oil gathering,”  David Kenyon, Sterling’s President, said. “Our continued investment in expansion projects across the Centennial System footprint ensures our producers receive timely access to the midstream infrastructure and markets necessary to maximize production and support their development plans.

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