Shale Daily / NGI All News Access

DCP Midstream Inks Eagle Ford Deal

DCP Midstream LLC has struck long-term agreements with Pioneer Natural Resources USA Inc., Reliance Eagleford Upstream Holding LP and Newpek LLC (combined known as Pioneer JV) to provide midstream services to handle liquids-rich production from the Eagle Ford Shale in South Texas.

The agreement covers gathering, processing, fractionation and marketing for Pioneer JV's Eagle Ford production from more than 300,000 gross acres. DCP Midstream has also executed a long-term gathering and processing agreement with a privately held producer for 33,000 acres of Eagle Ford development in Wilson and Karnes counties, TX.

DCP Midstream said it will construct 130 miles of 16-, 20- and 24-inch diameter gathering pipelines that will connect Pioneer JV's and the privately held producer's central gathering points and other gas supply to DCP Midstream's gathering and processing facilities. DCP Midstream has excess processing capacity of 250 MMcf/d currently available in the Eagle Ford area. DCP Midstream also said it would construct a sixth plant (Eagle gas plant) of 200 MMcf/d capacity and related natural gas liquids infrastructure, which is expected to be online in 3Q2012, increasing DCP Midstream's total capacity in the area to 1 Bcf/d.

The company recently announced its plans for a midstream "super system" in South Texas (see Shale Daily, Oct. 28).

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