DCP Midstream LLC (DCP) and West Texas LPG Pipeline LP (WTLPG) have entered into agreements which provide long-term natural gas liquid (NGL) gathering services for the DCP Midstream Sandhills Pipeline LLC (Sandhills Pipeline) through two new interconnect points with WTLPG. Sandhills will offer extensive access to Gulf Coast NGL markets, offering producers reliable, transparent fee based transportation service with significant market optionality. The new 700mi pipeline system will transport Y-grade NGLs from gas plants in the Permian Basin and South Texas to the various fractionator facilities along the Gulf Coast and the Mont Belvieu, Texas, NGL hub. The Sandhills Pipeline will meet the NGL transportation requirements of gas processing plants and shippers in West Texas and South Texas, including DCP gas plants and the new 200 million cubic feet per day (MMcf/d) DCP Eagle gas plant created to serve Eagle Ford shale gas development. DCP is also securing long-term commitments from other third-party shippers. The Sandhills Pipeline and WTLPG are organizing these projects with the intention to complete construction and commence operations by the first half of 2013.
