DCP Midstream (DPM) Acquires Seaway Products Pipeline from ConocoPhilips (COP)
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DCP Midstream (NYSE: DPM) reports that it has reached an agreement to acquire the Seaway Products Pipeline Company from ConocoPhillips (NYSE: COP) and create new natural gas liquids transportation capacity from the Midcontinent to the premium Texas Gulf Coast markets.
From the release: "The pipeline will be renamed the Southern Hills Pipeline and converted from refined products service to a natural gas liquids (NGL) pipeline running more than 700 miles between two major NGL market hubs – Conway, Kan., and Mont Belvieu, Texas. DCP Midstream will add a 130-mile extension to Conway and a 30-mile extension to Mont Belvieu, as well as pump capacity and associated gathering infrastructure, to the current 580-mile pipeline. The pipeline will have a target capacity of close to 150,000 barrels per day of Y-grade NGLs, and be connected to several DCP Midstream processing plants and anticipated third-party NGL producers. This approximately $750 million to $850 million total investment is expected to have an in-service date as early as mid-2013.
DCP Midstream will operate Southern Hills as a common carrier pipeline. The pipeline will open new capacity for NGLs produced from growing Midcontinent, Rockies and Conway-bound supply. DCP Midstream expects this new transportation capacity will help serve the growing need for Midcontinent transportation to the premium Mont Belvieu market and add value to DCP’s upstream producers."
From the release: "The pipeline will be renamed the Southern Hills Pipeline and converted from refined products service to a natural gas liquids (NGL) pipeline running more than 700 miles between two major NGL market hubs – Conway, Kan., and Mont Belvieu, Texas. DCP Midstream will add a 130-mile extension to Conway and a 30-mile extension to Mont Belvieu, as well as pump capacity and associated gathering infrastructure, to the current 580-mile pipeline. The pipeline will have a target capacity of close to 150,000 barrels per day of Y-grade NGLs, and be connected to several DCP Midstream processing plants and anticipated third-party NGL producers. This approximately $750 million to $850 million total investment is expected to have an in-service date as early as mid-2013.
DCP Midstream will operate Southern Hills as a common carrier pipeline. The pipeline will open new capacity for NGLs produced from growing Midcontinent, Rockies and Conway-bound supply. DCP Midstream expects this new transportation capacity will help serve the growing need for Midcontinent transportation to the premium Mont Belvieu market and add value to DCP’s upstream producers."
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