Sand Hills NGL Pipeline In Service & Moving Permian & Eagle Ford Liquids

DCP Sand Hills Pipeline Map - Eagle Ford Segment

The Sand Hills NGL Pipeline is online and taking NGLs from the Permian & Eagle Ford regions to fractionation facilities in the Gulf Coast and near Mont Belvieu.

The pipeline is 720 miles and runs from West Texas, near Midland, into South Texas on to Mont Belvieu. The pipeline will have initial capacity of 200,000 b/d and could be expanded to 350,000 b/d if needed.

“Sand Hills and Southern Hills provide a solution to the critical need for vital transportation capacity from key liquids producing regions,” said Wouter van Kempen, CEO.

DCP has a total of 1.3 bcf/d of processing capacity in the Permian and will have 1.2 bcf/d of capacity in the Eagle Ford once the Goliad Plant is completed in early 2014.

The Sand Hills in service was announced in conjunction with the in service of the Southern Hills NGL pipeline that moves liquids from the Midcontinent region to the Gulf Coast.

Read the full press release at dcpmidstream.com

DCP Plans New Eagle Ford Gas Processing Plant Near Goliad

DCP Midstream's Eagle Ford System Map

DCP Midstream along with DCP Midstream Partners plans to build a 200 mmcfd cryogenic processing plant near Goliad, TX. The Goliad Plant has an expected completion date of early 2014.

It will be the seventh plant owned by DCP in South Texas and adds to the company's significant position.

DCP's Eagle Ford System is highlighted by:

• 6,000 miles of gathering lines
• >1 Bcfd of processing capacity
• 3 fractionators with capacity of 36,000 b/d
• Access to the Sand Hills NGL pipeline
• Long-term commitments supported by 900,000 acres in the Eagle Ford.

“The Goliad plant is another great example of co-investment with our general partner. ”

— Bill Waldheim, president of DCP Midstream Partners

The Goliad plant will the the third plant in approximately 18 months brought online by the company is South Texas. The 200 mmcfd Eagle Plant will be online in the fourth quarter of 2012 and the 200 mmcfd Pettus Plant is has an in-service date of late 2013 or early 2014. The Goliad Plant is expected to be online in early 2014 as well.

DCP's Sand Hills Pipeline Moving Eagle Ford NGLs to Mont Belvieu

DCP Sand Hills Pipeline Map - Eagle Ford Segment

DCP's Sand Hills Pipeline has started servicing the Eagle Ford Shale. The company is opening the 720 mile pipeline that runs from the Permian Basin to Mont Belvieu (East of Houston) in segments. The next segment connects directly to Mont Belvieu and will be open by the end of 2012. Construction tying in the Permian Basin will be finished mid-2013.

“When finished, Sand Hills Pipeline will be a major link between the liquids-rich Eagle Ford and Permian producing regions and growing Gulf Coast markets,” said Tom O'Connor, chairman and chief executive officer of DCP Midstream. “With Sand Hills, we can offer an integrated NGL takeaway solution to producers, who will enjoy reliable one-stop service. Sand Hills adds to our well positioned assets in the Permian and Eagle Ford producing regions.”

When finished, the Sand Hills Pipeline will be 720 miles of 20-inch pipe with capacity of 200,000 barrels per day of NGLs and will have the ability to expand to 350,000 b/dif needed. DCP is projecting it will spend $1 billion on the pipeline and offers three strategic reasons for constructing the pipeline:

• Provides critical capacity and NGL transport from South Texas and the Permian Basin
• Capitalizes on increased Eagle Ford growth
• Improves reliability of the overall NGL network