DCP Midstream closes purchase of Seaway Products Pipeline

DCP Midstream has closed on its previously announced acquisition of the Seaway Products Pipeline Co. from ConocoPhillips.

DCP will convert the renamed Southern Hills Pipeline to NGL service, adding extensions to Mont Belvieu, Tex., and various US Midcontinent receipt points and associated gathering systems, creating new NGL transportation capacity from the Midcontinent to the Texas Gulf Coast. DCP Midstream will add a 130-mile extension from the pipeline’s current northern terminus to Conway, Kan., the 30-mile extension to Mont Belvieu, and pump capacity and to the current 580-mile pipeline (OGJ Online, June 13, 2011).

The company anticipates Southern Hills having capacity to ship about 150,000 b/d of Y-grade NGL and expects it to enter service as early as mid-2013. DCP Midstream will operate Southern Hills as a common carrier pipeline, connected to several DCP Midstream processing plants and anticipated third-party NGL producers.

DCP reached a long-term anchor agreement with Targa Resource Partners LLC in May for capacity at Targa’s 100,000 b/d fractionation expansion at Mont Belvieu (OGJ Online, May 10, 2011).

Contact Christopher E. Smith at

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