DCP Midstream LLC announced Feb. 28 that DCP Sand Hills Pipeline LLC has purchased approximately 60 miles of existing 20-inch pipeline in Andrews and Ector counties in West Texas from Odessa Fuels LLC.
The 60 miles of existing pipeline will be connected to the Sand Hills Pipeline, providing incremental natural gas liquids transportation services to the Mont Belvieu market for Permian Basin producers. This newly acquired segment of 20-inch pipe is expected to be placed into NGL service in the second quarter of 2013.
“The acquisition is a significant step forward in expanding the reach of Sand Hills Pipeline to provide NGL takeaway services to all producers in the Permian Basin,” said Bill Waldheim, president of DCP Midstream’s NGLs, Gas and Crude Oil Logistics business unit. “As the largest NGL producer in the Permian, DCP has a strategic imperative to provide open access transportation services to areas of the Permian that face capacity constraints today.”
Construction of the Sand Hills Pipeline is well under way, with segments serving Eagle Ford Shale producers to be placed in service early in the third quarter of 2012.