DCP finalizes deal for Conoco pipeline to US Gulf, will convert to NGL service
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 production.
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 markets.
DCP Midstream is a 50:50 joint venture between Spectra Energy and ConocoPhillips.
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