Southern Union Company’s Trunkline Gas Pipeline Signs Long-Term Transportation Agreement with DCP Midstream

October 2010 Vol. 237 No. 10

Southern Union Company announced Oct. 26 that its Trunkline Gas Company subsidiary has signed a precedent agreement with DCP Midstream, LLC to provide long-term, firm transportation service on a portion of Trunkline’s pipeline system in South Texas.

Trunkline Gas will file with FERC to make changes to the southernmost segment of its pipeline in Texas to provide DCP with transportation service for liquids-rich gas from the Eagle Ford shale in South Texas. As proposed, Trunkline would isolate its South Texas system at the Edna compressor station in Jackson County, Texas, and modify its facilities to allow bi-directional flow and the transportation of liquids-rich gas. In addition, Trunkline will seek FERC approval to make certain gas quality changes in its Gas Tariff.

DCP has five gas processing plants in South Texas, three of which can currently access Trunkline Gas. DCP plans to build pipelines to connect its remaining two South Texas plants to the Trunkline Gas system.
“Southern Union looks forward to completing this long-term, firm transportation agreement with DCP,” said Mike Moran, vice president and chief commercial officer for Southern Union’s pipeline group. “It will provide for Eagle Ford shale production to be brought to market by using Trunkline’s South Texas System to its full capacity.”