DCP Midstream has closed on its previously-announced
acquisition of the Seaway Products Pipeline Co. from
ConocoPhillips. Seaway currently operates a 523-mile long
pipeline between Pasadena, Texas and Cushing, Oklahoma.
DCP will convert the renamed Southern Hills Pipeline to natural
gas liquids service and add extensions to Mont Belvieu,
Texas, along with various receipt points in the Midcontinent
region and associated gathering infrastructure, to create new
NGL transportation capacity from the Midcontinent to the
premium Texas Gulf coast markets.
Southern Hills Pipeline will have a target capacity of
approximately 150,000 bpd of Y-grade NGLs and is expected to be
in service as early as mid-2013.
DCP Midstream will operate Southern Hills as a common
carrier pipeline, it said.
Southern Hills is a game changer for Midcontinent NGL
values and DCP, said Bill Waldheim, president of DCP
Midstreams northern business unit. This critical
piece of midstream infrastructure will increase the value our
producers realize for their growing Midcontinent NGL
As the largest producer of NGLs in the nation, we are
excited to make this acquisition and have a stake in opening up
major, new NGL transportation capacity to premium
DCP Midstream is a 50:50 joint venture between Spectra
Energy and ConocoPhillips.