SemGroup Corp. and DCP Midstream LP have extended an open season to Aug. 5 for natural gas liquid (NGL) shipping capacity on multiple pipelines that move more supply from Colorado to Texas.
One of the pipelines up for bids is the soon-to-be converted section of SemGroup’s White Cliffs Pipeline, a crude system that should be in service sometime late this year. The 527-mile system includes two 12-inch diameter common carrier pipelines, one for crude transport and the other that is currently being converted to NGL service for 90,000 b/d of y-grade capacity. SemGroup owns a 51% stake in the line while Anadarko Petroleum Corp. owns the remaining interest.
In addition to the converted White Cliffs line, the open season offers NGL capacity on the 500-mile, 22 million b/d Wattenberg NGL Pipeline, and the 940-mile, 175 million b/d NGL Southern Hills Pipeline.
DCP Midstream owns a 66% stake in the Southern Hills Pipeline and has 100% ownership of the Wattenberg Pipeline. Spectra Energy Corp. acquired the remaining 34% interest in Southern Hills in 2015.
The NGL capacity that the two operators are offering extends from Weld County, CO, to Mont Belvieu, TX.
Transportation service would be provided under a published joint tariff between the two carriers. Shippers would be able to make long-term ship-or-pay volume commitments by executing transportation services agreements with White Cliffs and DCP, in exchange for incentive transportation rates.
SemGroup announced the White Cliffs conversion project in May 2018, at the same time that DCP announced an NGL connector line would join the White Cliffs system.