DCP Midstream is accelerating plans to construct a 720-mile pipeline for natural gas liquids through Texas, connecting the Permian and Eagle Ford basins to Mont Belvieu, the company announced.
The Permian and Eagle Ford basins are major oil and gas production areas in west and south Texas respectively. The pipeline will start in the state’s western region, run through the south and end at Mont Belvieu, Texas, a hub of natural gas liquids processing and storage on the Gulf Coast’s northern end.
DCP Midstream, a Denver-based gatherer and transporter of natural gas, announced this week that its board of directors has approved construction of the Sand Hills Pipeline, at a cost of more than $1 billion. The company is not releasing the pipeline’s exact cost “for competitive reasons,” said spokeswoman Lisa Newkirk.
The company, a joint venture between ConocoPhillips and Spectra Energy, has been securing rights and permits to build the Sand Hills Pipeline since November, Newkirk said. According to the company’s construction schedule, pipeline access from the Eagle Ford will be ready by the third quarter of 2012. Service from the Permian Basin is scheduled to come online as soon as the second quarter of 2013.
At 20 inches in diameter, the pipe will have capacity to transport 200,000 barrels per day, according to a company statement.
Source: Fuel Fix
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