DCP Midstream Completes Pipeline Acquisition to Open NGL Access from the Midcontinent to the Texas Gulf Coast
DENVER--(BUSINESS WIRE)-- DCP Midstream announces today that it has closed on its previously announced acquisition of the Seaway Products Pipeline Company from ConocoPhillips.
DCP Midstream will convert the renamed Southern Hills Pipeline to natural gas liquids service and add extensions to Mont Belvieu, Texas, along with various receipt points in the Midcontinent region and associated gathering infrastructure, to create new NGL transportation capacity from the Midcontinent to the premium Texas Gulf Coast markets.
Southern Hills Pipeline will have a target capacity of approximately 150,000 barrels per day of Y-grade NGLs and is expected to be in service as early as mid-2013. DCP Midstream will operate Southern Hills as a common carrier pipeline.
“Southern Hills is a game changer for Midcontinent NGL values and DCP,” said Bill Waldheim, president of DCP Midstream’s northern business unit. “This critical piece of midstream infrastructure will increase the value our producers realize for their growing Midcontinent NGL production. As the largest producer of NGLs in the nation, we are excited to make this acquisition and have a stake in opening up major, new NGL transportation capacity to premium markets.”
Shippers seeking more information should contact Rick Paul at 713-735-3739 or rmpaul@dcpmidstream.com. Vendors with inquiries should email vendorinquiries@dcpmidstream.com and read www.dcpmidstream.com/SupplyChain/Pages/SupplyChainOverview.aspx.
Additional information is available on DCP Midstream’s Southern Hills Pipeline web page at www.dcpmidstream.com/Investors%20and%20News/Pages/SouthernHillsPipeline.aspx.
DCP Midstream LLC, with headquarters in Denver, leads the midstream segment as the second-largest natural gas gatherer and processor, the largest natural gas liquids producer and one of the largest marketers in the United States. DCP Midstream operates in 18 states across major producing regions. DCP Midstream is a 50:50 joint venture between Spectra Energy and ConocoPhillips. The company owns the general partner of DCP Midstream Partners LP, a master limited partnership, and provides operational and administrative support to the partnership. DCP Midstream is the largest oil and gas company, the largest private company and one of the “Best Places to Work” in Denver as ranked by the Denver Business Journal. For more information, visit the DCP Midstream website at www.dcpmidstream.com.
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DCP Midstream
Lisa Newkirk, 303-605-1837
24-Hour: 303-829-1953
Source: DCP Midstream
