DCP purchases Permian basin NGL line for use with Sand Hills

DCP Midstream LLC’s wholly owned subsidiary DCP Sand Hills Pipeline LLC purchased about 60 miles of existing 20-in. OD pipeline in Andrews and Ector counties Texas from Odessa Fuels LLC. DCP will connect the acquired line to the Sand Hills Pipeline, providing incremental NGL transportation services to the Mont Belvieu market for Permian basin producers.

DCP expects the newly acquired segment to enter service second-quarter 2013.

Construction of the Sand Hills Pipeline is under way, with segments serving Eagle Ford shale producers expected to enter service in the third quarter.

DCP is building a 75-MMcfd natural gas processing plant in Glasscock County, Tex., along with associated low-pressure gathering to handle Wolfberry production in the Permian basin (OGJ Online, Feb. 15, 2012).

Contact Christopher E. Smith at chriss@ogjonline.com.

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