DCP Midstream will build a new natural gas processing facility and high-pressure gathering system in Weld County in the US state of Colorado.

The new LaSalle plant, with a capacity of 110 million cubic feet per day (mmcf/d), is expected to begin operation in 2013.

The facility will augment DCP’s position in the Denver-Julesburg basin, where the company currently owns and operates seven natural gas processing plants with a combined capacity of 400 mmcf/d.

The gathering system expansion will include capability to service producers in the Niobrara Shale development to the north and west of DCP’s existing footprint, the company said.

DCP is funding the $270m LaSalle plant through its existing debt facilities and operating cash.