Major Permian Basin and Eagle Ford pipelines have begun service, it was announced today. DCP Midstream, Phillips 66 and Spectra Energy have completed the natural gas pipeline construction and own a one-third interest in the pipeline entities.
– The 720-mile Sand Hills NGL Pipeline is transporting natural gas liquids (NGLs) from production in the Permian Basin and Eagle Ford Shale.
– The 800-mile Southern Hills NGL Pipeline is transporting NGLs from production in the Midcontinent.
“Sand Hills and Southern Hills provide a solution to the critical need for vital transportation capacity from key liquids producing regions,” said Wouter van Kempen, chairman, president and chief executive officer of DCP Midstream. “DCP Midstream will have an integrated NGL pipeline system, consisting of Sand Hills and Southern Hills as well as our interests in the Front Range and Texas Express pipelines, that connect our gathering and processing systems located in most of the major liquids-rich and oil-driven shale plays to growing Gulf Coast markets. As the nation’s No. 1 NGL producer, the No. 2 natural gas gatherer and processor, and the No. 3 NGL pipeline operator, DCP Midstream can offer customers superior value and services across the midstream value chain.”
The Permian Basin and Eagle Ford NGL pipelines began taking flows in the fourth quarter of 2012 and first quarter of 2013, respectively, and are on budget and ahead of schedule.
Sand Hills NGL Pipeline
The Permian Basin and Eagle Ford NGL Pipeline provides takeaway service from DCP Midstream and third-party plants in the Permian and the Eagle Ford to fractionation facilities along the Texas Gulf Coast and the Mont Belvieu, Texas, market hub. The pipeline will ramp up to a capacity of more than 200,000 barrels per day after completion of initial pump stations. Further capacity increases to 350,000 bbl/d are possible with the installation of additional pump stations.
Sand Hills was developed to meet growing demand in the Permian and Eagle Ford, where DCP Midstream has a significant gathering and processing footprint. In the Permian, DCP Midstream is the largest producer of NGLs and has processing capacity of 1.3 billion cubic feet per day. In addition, the Rawhide Plant will add 75 million cubic feet per day of processing capacity when it goes into service in the middle of 2013. In the Eagle Ford, DCP Midstream and its master limited partnership, DCP Midstream Partners, have integrated assets that include seven processing plants, which will have processing capacity of 1.2 Bcf/d with the completion of the Goliad Plant in the first quarter of 2014.
Southern Hills NGL Pipeline
Southern Hills NGL Pipeline provides takeaway service from DCP Midstream and third-party plants in the Midcontinent to fractionation facilities along the Texas Gulf Coast and the Mont Belvieu market hub. The pipeline will ramp up to a capacity of 175,000 bbl/d after completion of planned pump stations.
This critical piece of midstream infrastructure provides improved market access for growing Midcontinent NGL production, where DCP Midstream has a leading position as a gatherer and processor with approximately 2 Bcf/d of processing capacity.
Matcor’s Insight That Works
This announcement is exciting for all companies who are involved with the natural gas pipelines industry. The news is in line with continued growth of energy demand.
The companies are sure to reap large benefits from this natural gas pipeline. However, there is a large responsibility for pipeline safety, cathodic protection management and more.
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