Denver-based DCP Midstream Partners LP announced a $626 million dropdown from DCP Midstream of an additional 47% interest in its Eagle Ford joint venture, bringing its ownership to 80%. It’s the largest dropdown in the history of the partnership.

In conjunction with the immediately accretive transaction, DCP Midstream will provide a three-year direct commodity price hedge for the Partnership’s additional 47% interest.

The partnership has also increased its interest in the Goliad Plant and associated infrastructure to 80% with an estimated total investment of $230 million. The Goliad Plant is a 200 MMcf/d processing plant in the Eagle Ford system with an expected in-service date in the first quarter of 2014. DCP Midstream will provide a 27-month hedge associated with the project beginning in January for the additional 47% interest in the Goliad Plant and related infrastructure.

With the dropdown, the incremental ownership in the Goliad Plant and the completion of the wholly owned Eagle Plant, the partnership will have an 80% interest in one of the largest gathering and processing systems in the Eagle Ford Shale. The Eagle Ford system includes:

The five existing plants, coupled with the Eagle and Goliad plants, will result in 1.2 Bcf/d of processing capacity in the area, the partnership said.

Last year the partnership completed more than $1 billion of dropdowns from DCP Midstream and achieved about $400 million in organic growth and acquisitions, said Bill Waldheim, president of the partnership.

Separately, the partnership announced a long-term ethane storage agreement with Nova Chemicals, which underpins the expansion of its Marysville, MI, natural gas liquids (NGL) storage facility. “This project provides much-needed incremental NGL storage capacity for the growing Marcellus/Utica production,” the partnership said. The expansion includes new ethane storage capacity of about 1 million bbl and is expected to be in service during the fourth quarter.

The partnership reported adjusted earnings before interest, taxes, depreciation and amortization for 2012 of $252 million, an increase from $200 million in 2011.

DCP Midstream is a 50-50 joint venture of Spectra Energy and Phillips 66 and owns the general partner of DCP Midstream Partners.