DENVER--(BUSINESS WIRE)--As DCP Midstream continues to move toward a fourth-quarter close on the acquisition of the Seaway Products Pipeline Company, it announces today a request for binding expressions of interest in the proposed Southern Hills Pipeline.
DCP Midstream announced in June an agreement to acquire the Seaway Products Pipeline Company from ConocoPhillips to create a new natural gas liquids pipeline for transportation capacity from the Midcontinent to the premium Texas Gulf Coast markets, including Mont Belvieu. The pipeline will be renamed Southern Hills Pipeline and converted from refined products service to an interstate natural gas liquids pipeline. DCP Midstream will add extensions into Mont Belvieu, Texas, along with various receipt points in the Midcontinent region and associated gathering infrastructure.
Southern Hills Pipeline will have a target capacity of close to 150,000 barrels per day of Y-grade NGLs and be connected to several DCP Midstream processing plants. Southern Hills Pipeline is expected to be in service as early as mid-2013.
DCP Midstream will operate Southern Hills Pipeline as a common carrier pipeline.
“We are seeing tremendous producer interest in our Southern Hills Pipeline project,” said Bill Waldheim, president of DCP Midstream’s northern business unit. “Similar to our Sand Hills 720-mile, 20-inch, Y-grade NGL pipeline that is currently under construction, which will alleviate NGL bottlenecks in the Permian basin, so, too, will Southern Hills Pipeline provide Midcontinent producers access to the premium priced Gulf Coast NGL markets.”
Interested shippers have the opportunity to submit a binding expression of interest by Oct. 31, 2011. For information, contact Rick Paul at 713-735-3739 or firstname.lastname@example.org. Additional information is available on DCP Midstream’s Southern Hills Pipeline web page at www.dcpmidstream.com/Investors and News/Pages/SouthernHillsPipeline.aspx.
DCP Midstream LLC, with headquarters in Denver, leads the midstream segment as the second-largest natural gas gatherer and processor, the largest natural gas liquids producer and one of the largest marketers in the United States. DCP Midstream operates in 18 states across major 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. DCP Midstream is the largest oil and gas company, the largest private company and one of the “Best Places to Work” in Denver as ranked by the Denver Business Journal. For more information, visit the DCP Midstream website at www.dcpmidstream.com.
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