EPP, Anadarko, DCP to build DJ basin-Texas NGL pipeline

Enterprise Products Partners LP, Anadarko Petroleum Corp., and DCP Midstream LLC plan to build a natural gas liquids pipeline from the Denver-Julesburg basin in Weld County, Colo., to Skellytown, Tex., roughly 435 miles. The Front Range Pipeline will interconnect to the Mid-America Pipeline system and the recently announced Texas Express Pipeline (OGJ Online, Mar. 6, 2012).

EPP expects Front Range to transport 150,000 b/d of NGL, expandable to 230,000 b/d depending on shipper interest. Enterprise will build and operate the pipeline and expects it to enter service during this year’s fourth quarter.

Anadarko described the project as allowing it to capture the highest wellhead netbacks on expected growth in its Wattenberg play, also noting Western Gas Partners LP’s plans to build the Lancaster gas plant in the DJ basin. Western Gas expects the Lancaster plant to enter service first-quarter 2014, supported by a throughput agreement with Anadarko.

DCP also remarked on plant development in the DJ basin in expressing the need to develop open-access transportation to the Mont Belvieu, Tex., fractionation complex.

Each company will hold a one-third interest in Front Range. A binding open season for the project ends May 14.

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

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