DCP Midstream and DCP Midstream Partners Announce Pipeline Extension in East Texas
DENVER, Aug. 5 /PRNewswire-FirstCall/ -- DCP Midstream, LLC and its master limited partnership DCP Midstream Partners, LP (NYSE: DPM), today announced a $56 million pipeline project which will extend their East Texas joint venture gathering footprint in southern Panola County and access volumes from the rapidly growing Minden Field in Rusk County. The 30-mile, 20 inch pipeline with a designed capacity of 175 million cubic feet per day (MMcf/d) will gather gas for processing at the joint venture's East Texas complex. The gathering system is scheduled to be in-service during the second quarter of 2009. Upon completion, the pipeline will receive dedicated volumes from third parties and expand our reach into a new development area of East Texas.
The East Texas joint venture is 75 percent owned by DCP Midstream, LLC, and 25 percent owned by DCP Midstream Partners, LP. It includes over 500 miles of gathering pipeline and over 25,000 horsepower of compression and has a processing capacity of nearly 800 MMcf/d across five plants. The East Texas complex is strategically linked to the Carthage Hub with access to 10 different residue lines with 1.5 Bcf/d of delivery capacity.
"We are committed to a major step-out in our East Texas gas gathering system which offers us access to the existing growth area of the Minden field and other areas that are expected to develop in southwest Panola County," said Tom O'Connor, chairman, president and chief executive officer of DCP Midstream, LLC. "Our East Texas complex is well positioned to serve and respond to customers who are quickening their pace of development in this area. There are favorable indications that this frontier area has promising potential for existing and new producers and customers. This extension of our gathering system allows us to access an exciting growth area of East Texas and better utilize the gathering and processing capacity of our East Texas complex."
"We are continuing to execute on our growth strategy of building upon and optimizing our assets. We're excited to extend the joint venture's footprint into this growth area," said Mark Borer, president and chief executive officer, DCP Midstream Partners, LP.
DCP Midstream, LLC, headquartered in Denver, Colorado, leads the midstream segment as one of the nation's largest natural gas gatherers and processors, and the largest natural gas liquids (NGLs) producer. DCP Midstream operates in 16 states across the five largest natural gas producing regions in the United States. DCP Midstream is a 50-50 joint venture between Spectra Energy and ConocoPhillips. DCP Midstream owns the General Partner of DCP Midstream Partners, LP, a master limited partnership, and provides operational and administrative support to the partnership. For more information, visit the DCP Midstream, LLC Web site at http://www.dcpmidstream.com.
DCP Midstream Partners, LP (NYSE: DPM) is a midstream master limited partnership that gathers, processes, transports and markets natural gas, transports and markets natural gas liquids, and is a leading wholesale distributor of propane. DCP Midstream Partners, LP is managed by its general partner, DCP Midstream GP, LLC, which is wholly owned by DCP Midstream, LLC, a joint venture between Spectra Energy and ConocoPhillips. For more information, visit the DCP Midstream Partners, LP Web site at http://www.dcppartners.com.
SOURCE DCP Midstream, LLC; DCP Midstream Partners, LP
Contact: Roz Elliott of DCP Midstream, +1-303-605-1707, or 24-Hour, +1-303-882-1703; or Karen Taylor of DCP Midstream Partners, LP, +1-303-633-2913, or 24-Hour, +1-303-809-9160