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What is a Central Delivery Point?

CDP (Central Delivery Point)

A central delivery point, or CDP, is used to refer to a gas processing plant shared by several wells and leases.  The hydrocarbons arrive by pipeline and are then separated, treated, allocated and sold.

How it’s important to us

Central Delivery Points are a key part of the onshore oil & gas industry.  Frequently, many different operators of several wells, even across leases, use the same CDP.  They perform the gas processing, separate out the NGLs, split off the high-pressure and low-pressure gas, scrub the incoming hydrocarbons and flare off the unusable material.  The CDP also performs in-depth analysis and allocates the volumes – at a specific oil, gas and NGL level – back to the appropriate lease.

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