Niobrara/DJ gas processing buildout slows, despite continued service expansion

J. Stell, Contributing Writer The Niobrara/Denver-Julesburg (DJ) basin has been one of the fastest-growing gas producing areas in North America during the past few years. However, some industry insiders believe that production would have grown even faster if not for a historical lack of gas processing capacity in the region. The good news is that midstream companies, such as DCP Midstream Partners, have been expanding their gas processing assets in the area into service. The bad news, however, is that the new processing and takeaway capacity might not be fully utilized in the near term if crude oil prices curtail drilling activity and, in turn, associated gas production in the play. In fac