DCP Midstream is holding a binding open season through Oct. 31 for capacity on its proposed Southern Hills Pipeline. The company said it is moving toward a fourth quarter close on its acquisition of Seaway Products Pipeline Co., whose assets would be part of the Southern Hills natural gas liquids (NGL) project.

The company is acquiring Seaway from ConocoPhillips to create an NGL pipeline for transportation capacity from the Midcontinent to Texas Gulf Coast markets, including the Mont Belvieu complex (see Daily GPI, June 10). The pipeline is to be renamed Southern Hills Pipeline and converted from refined products service to an interstate NGL pipeline. DCP Midstream would add extensions into Mont Belvieu, along with various receipt points in the Midcontinent and associated gathering infrastructure.

Southern Hills Pipeline would have a target capacity of close to 150,000 b/d of Y-grade NGLs and be connected to several DCP Midstream processing plants. Southern Hills is expected to be in service as early as mid-2013.

“Similar to our Sand Hills 720-mile, 20-inch [diameter], Y-grade NGL pipeline that is currently under construction, which will alleviate NGL bottlenecks in the Permian Basin, so, too, will Southern Hills Pipeline provide Midcontinent producers access to the premium-priced Gulf Coast NGL markets,” said DCP Midstream’s Bill Waldheim, president of the northern business unit.

For more information, contact Rick Paul at (713) 735-3739, or rmpaul@dcpmidstream.com.

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