DENVER--(BUSINESS WIRE)--DCP Midstream LLC (DCP) and West Texas LPG Pipeline LP (WTLPG) announced today that they have entered into agreements which provide long-term natural gas liquid (NGL) gathering services for the DCP Midstream Sandhills Pipeline LLC (Sandhills Pipeline) through two new interconnect points with WTLPG.
“We are very excited to work with WTLPG to provide an integrated, one-stop solution to gather and transport the increased production of NGLs from West Texas to feed the Sandhills Pipeline,” said Bill Waldheim, president of DCP’s northern business unit.
“We see this as a very cost effective, highly efficient and timely way to integrate the Sandhills Pipeline with existing and planned gas processing facilities,” Waldheim said. “Sandhills will provide extensive access to Gulf Coast NGL markets. Producers can be assured of reliable, transparent fee based transportation service with significant market optionality.”
“This is a great opportunity for WTLPG to utilize its gathering assets in a creative and optimal manner to develop an industry solution to NGL transportation constraints arising from the rapid growth in the Permian Basin,” said Terry Duhon, vice president midcontinent region of Chevron Pipe Line Company, the general partner of WTLPG.
DCP initiated an open season in November 2010 and is in the process of securing right-of-way and environmental permits for the Sandhills Pipeline. The new 700-mile pipeline system will transport Y-grade NGLs from gas plants in the Permian Basin and South Texas to the various fractionator facilities along the Gulf Coast along with the Mont Belvieu, Texas, NGL hub.
The Sandhills Pipeline will serve the NGL transportation needs of gas processing plants and shippers in West Texas and South Texas, including DCP gas plants and the new 200 million cubic feet per day (MMcf/d) DCP Eagle gas plant designed to serve Eagle Ford shale gas development. In addition, DCP is securing long-term commitments from other third-party shippers.
WTLPG has facilities that access liquid-rich natural gas production from West Texas and New Mexico that will be delivered to the two planned receipt points on DCP’s Sandhills Pipeline, providing producers with access to a full scope of midstream energy services. Producers can be assured of transparent, fee-based transportation and fractionation services with deliveries to facilities that will include Mont Belvieu.
The Sandhills Pipeline and WTLPG are coordinating these projects toward a first half of 2013 completion of construction and commencement of operations.
Interested shippers on Sandhills can contact David Barth at (713) 735-3965. Additional information is available at www.dcpmidstream.com/Investors and News/Pages/Sandhills Pipeline Project.aspx.
DCP Midstream, LLC, headquartered in Denver, Colorado, leads the midstream segment as one of the nation's top three largest natural gas gatherers and processors, and the largest natural gas liquids producer and one of the largest marketers in the U.S. DCP Midstream operates in 18 states across 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. For more information, visit the DCP Midstream, LLC website at www.dcpmidstream.com.
DCP Midstream is a Best Place to Work Company in Denver and the largest private company in Denver as rated by the Denver Business Journal.
WTLPG pipeline system is jointly owned by Chevron Pipe Line Company, a wholly owned subsidiary of Chevron Corporation (NYSE: CVX) with an 80 percent interest and wholly owned subsidiaries of Altas Pipeline Partners, L.P., (“APL”) with a 20 percent interest. It is operated by Chevron Pipe Line and transports natural gas liquids to Mont Belvieu, Texas.
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