DCP Midstream Announces Southern Hills NGL Pipeline Extension Into the DJ Basin Adding Takeaway Capacity via White Cliffs
May 07 2018 - 4:25PM
Today, DCP Midstream, LP (NYSE:DCP) announced that the Southern
Hills natural gas liquids (NGL) pipeline will connect the DJ Basin
to Cushing, Oklahoma and beyond via the White Cliffs pipeline.
SemGroup, the operator of White Cliffs, plans to convert a portion
of their pipeline system to NGL service and interconnect with
Southern Hills. The pipeline conversion and connection with
Southern Hills will provide an additional option for NGL takeaway
to meet the growing needs of Colorado’s prolific DJ Basin. As
announced in DCP’s first quarter 2018 earnings release, this
project is part of DCP’s larger, multi-year planned growth
strategy, including up to 1.5 BCF per day of incremental processing
and bypass capacity, and additional NGL and gas takeaway capacity.
“DCP is excited to join SemGroup in this critical project, as we
provide necessary NGL takeaway infrastructure to our comprehensive
integrated DJ Basin growth plan,” said Wouter van Kempen, chairman,
president and CEO of DCP Midstream. “The White Cliffs conversion
and connection with our Southern Hills pipeline will tie the DJ
Basin to the Gulf Coast market centers of Mont Belvieu, Sweeny, and
beyond. This is another high return, capital efficient solution
driving increased volumes and utilization on Southern Hills.”
SemGroup plans to convert one of their 12-inch-diameter
pipelines from crude service to NGL Y-grade service connecting the
DJ Basin to Cushing, Oklahoma. The pipeline is expected to have a
total capacity of 90,000 barrels per day, expandable to 120,000
barrels per day, and is scheduled to be in service during the
fourth quarter of 2019. As part of the project, SemGroup plans to
construct a 12-mile extension of White Cliffs Pipeline south of
Cushing to interconnect with Southern Hills, which is owned
two-thirds by DCP, and one-third by Phillips 66 Partners LP
(NYSE:PSXP). Additionally, DCP plans to construct a 25-mile
pipeline in the DJ Basin, connecting its system to White Cliffs.
DCP and Southern Hills have entered into 10-year agreements
providing up to 50,000 barrels per day transport.
White Cliffs and Southern Hills plan to jointly conduct a
binding open season to attract additional volumes from producers
and processers, with shippers moving NGLs under a published joint
tariff between the two carriers.
INVESTOR
RELATIONS: |
Irene Lofland |
Phone: |
303-605-1822
|
MEDIA RELATIONS: |
Sarah Sandberg |
Phone: |
303-605-1626 |
ABOUT DCP MIDSTREAM, LPDCP Midstream, LP
(NYSE:DCP) is a midstream master limited partnership, with a
diversified portfolio of assets, engaged in the business of
gathering, compressing, treating, processing, transporting, storing
and selling natural gas; and producing, fractionating,
transporting, storing and selling NGLs and recovering and selling
condensate. DCP owns and operates more than 60 plants and 63,000
miles of natural gas and natural gas liquids pipelines, with
operations in 17 states across major producing regions, and leads
the midstream segment as one of the largest natural gas liquids
producers and marketers and one of the largest natural gas
processors in the U.S. Denver, Colorado based DCP is managed by its
general partner, DCP Midstream GP, LP, which is managed by its
general partner, DCP Midstream GP, LLC, which is 100% owned by DCP
Midstream, LLC. DCP Midstream, LLC is a joint venture between
Enbridge and Phillips 66. For more information, visit the DCP
Midstream, LP website at www.dcpmidstream.com.
CAUTIONARY STATEMENTS
This press release may contain or incorporate by reference
forward-looking statements as defined under the federal securities
laws regarding DCP Midstream, LP, including projections, estimates,
forecasts, plans and objectives. Although management believes that
expectations reflected in such forward-looking statements are
reasonable, no assurance can be given that such expectations will
prove to be correct. In addition, these statements are subject to
certain risks, uncertainties and other assumptions that are
difficult to predict and may be beyond DCP's control. If one or
more of these risks or uncertainties materialize, or if underlying
assumptions prove incorrect, DCP's actual results may vary
materially from what management anticipated, estimated, projected
or expected. Factors that could cause actual results or events to
differ materially from those described in the forward-looking
statements are set forth in DCP’s filings with the Securities and
Exchange Commission. The forward-looking statements contained
herein speak as of the date of this announcement. DCP undertakes no
obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Phillips 66 Partners (NYSE:PSXP)
Historical Stock Chart
From Mar 2024 to Apr 2024
Phillips 66 Partners (NYSE:PSXP)
Historical Stock Chart
From Apr 2023 to Apr 2024