Shale Daily / NGI All News Access

New Project Offering NGL Transport Capacity in Texas

DCP Midstream LLC s holding a nonbinding open season through Dec. 9 for the proposed DCP Sandhills Pipeline. The natural gas liquids (NGL) pipeline would run more than 700 miles from West Texas to fractionation and storage facilities along the Texas Gulf Coast including those at Mont Belvieu, TX.

Sandhills Pipeline would open new capacity for NGLs produced from the Avalon Shale in West Texas and the Eagle Ford Shale in South Texas to be transported to market, DCP Midstream said. "This system should relieve the capacity constraints that are currently affecting producers in these regions," it said.

The project is expected to be in service during 2013 and would have a target capacity of 130,000 b/d. However, the project is not restricted to this capacity and is scalable to meet customer needs, DCP Midstream said.

Recently, Southern Union Co.'s Trunkline Gas Co. signed a precedent agreement with DCP Midstream to provide long-term, firm transportation service for liquids-rich gas. DCP Midstream will be the anchor shipper on a modified portion of the Trunkline system in South Texas focusing on Eagle Ford production. Trunkline intends to file with the Federal Energy Regulatory Commission to make changes to the southernmost segment of its pipeline in Texas to provide DCP Midstream with transportation service from the Eagle Ford play (see Shale Daily, Oct. 28).

For information on the open season contact David Barth at (713) 735-3965.

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