DCP Midstream Holds Open Season For NGL Pipeline Expansion

November 2011, Vol. 238 No. 11

As DCP Midstream continues move toward closing on the acquisition of the Seaway Products Pipeline Company, it announced a request for binding expressions of interest in the proposed Southern Hills Pipeline.

DCP Midstream is acquiring 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, TX.

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 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 bpd 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 now under construction, which will alleviate NGL bottlenecks in the Permian basin, so, too, will Southern Hills Pipeline provide Midcontinent producers access to premium-priced Gulf Coast NGL markets.”

More information is available on DCP Midstream’s Southern Hills Pipeline web page at www.dcpmidstream.com/Investors and News/Pages/SouthernHillsPipeline.aspx.

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