DCP Midstream LLC announced Sand Hills Pipeline has initiated service from the South Texas Eagle Ford shale, offering transportation capacity for producers’ growing natural gas liquids volumes.
DCP Midstream of Denver is opening Sand Hills in phases, with the first segment in South Texas available to Eagle Ford NGL producers. By yearend, DCP Midstream expects to have completed Sand Hills to connect directly into Mont Belvieu, Tex.
In November 2010, DCP Midstream began an open season and securing right-of-way and environmental permits for Sand Hills Pipeline. The new system will move Y-grade NGLs from gas plants in the Permian basin and South Texas to various fractionators along the Gulf Coast along with the Mont Belvieu NGL hub (OGJ Online, May 10, 2011).
“When finished, Sand Hills Pipeline will be a major link between the liquids-rich Eagle Ford and Permian producing regions and growing Gulf Coast markets,” said Tom O'Connor, DCP Midstream chairman and chief executive officer.
Construction continues on the phase of the Sand Hills system for Permian basin service. It’s expected to go into service by second-quarter 2013.
When completed, Sand Hills will consist of 720 miles of 20-in pipeline with an initial capacity of more than 200,000 b/d, and the system is expandable to 350,000 b/d with installation of more pump stations.
DCP Midstream, which operates in 18 states, is a 50-50 joint venture of Spectra Energy and Phillips 66. The company owns the general partner of DCP Midstream Partners LP, a master limited partnership, and provides operational and administrative support to the partnership.