DCP Midstream LLC and Occidental Petroleum Corp. (Oxy) have made preliminary agreements for Oxy's Occidental Chemical Corp. to provide right-of-way for DCP Midstream's Sandhills Pipeline LLC and for DCP Midstream to provide a supply option for a proposed Oxy natural gas liquids (NGL) fractionator in Ingleside, TX. The agreement will provide Sandhills with about 14 miles of right-of-way and access to the Mont Belvieu, TX, fractionation complex. DCP Midstream is in the process of securing the remaining right-of-way and environmental permits for the pipeline. The 70-mile system will transport Y-grade NGLs from gas plants in the Permian Basin and South Texas to the various fractionator facilities along the Gulf Coast, along with the Mont Belvieu NGL hub (see Daily GPI, June 10).
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