DENVER, May 07, 2018 (GLOBE NEWSWIRE) -- Today, DCP Midstream, LP (NYSE:DCP) announced that the Southern Hills natural gas liquids (NGL) pipeline will connect the DJ Basin to Cushing, Oklahoma and beyond via the White Cliffs pipeline. SemGroup, the operator of White Cliffs, plans to convert a portion of their pipeline system to NGL service and interconnect with Southern Hills. The pipeline conversion and connection with Southern Hills will provide an additional option for NGL takeaway to meet the growing needs of Colorado’s prolific DJ Basin. As announced in DCP’s first quarter 2018 earnings release, this project is part of DCP’s larger, multi-year planned growth strategy, including up to 1.5 BCF per day of incremental processing and bypass capacity, and additional NGL and gas takeaway capacity.
“DCP is excited to join SemGroup in this critical project, as we provide necessary NGL takeaway infrastructure to our comprehensive integrated DJ Basin growth plan,” said Wouter van Kempen, chairman, president and CEO of DCP Midstream. “The White Cliffs conversion and connection with our Southern Hills pipeline will tie the DJ Basin to the Gulf Coast market centers of Mont Belvieu, Sweeny, and beyond. This is another high return, capital efficient solution driving increased volumes and utilization on Southern Hills.”
SemGroup plans to convert one of their 12-inch-diameter pipelines from crude service to NGL Y-grade service connecting the DJ Basin to Cushing, Oklahoma. The pipeline is expected to have a total capacity of 90,000 barrels per day, expandable to 120,000 barrels per day, and is scheduled to be in service during the fourth quarter of 2019. As part of the project, SemGroup plans to construct a 12-mile extension of White Cliffs Pipeline south of Cushing to interconnect with Southern Hills, which is owned two-thirds by DCP, and one-third by Phillips 66 Partners LP (NYSE:PSXP). Additionally, DCP plans to construct a 25-mile pipeline in the DJ Basin, connecting its system to White Cliffs. DCP and Southern Hills have entered into 10-year agreements providing up to 50,000 barrels per day transport.
White Cliffs and Southern Hills plan to jointly conduct a binding open season to attract additional volumes from producers and processers, with shippers moving NGLs under a published joint tariff between the two carriers.
| INVESTOR RELATIONS: |
Irene Lofland |
| Phone: |
303-605-1822
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| MEDIA RELATIONS: |
Sarah Sandberg |
| Phone: |
303-605-1626 |
ABOUT DCP MIDSTREAM, LP
DCP Midstream, LP (NYSE:DCP) is a midstream master limited partnership, with a diversified portfolio of assets, engaged in the business of gathering, compressing, treating, processing, transporting, storing and selling natural gas; and producing, fractionating, transporting, storing and selling NGLs and recovering and selling condensate. DCP owns and operates more than 60 plants and 63,000 miles of natural gas and natural gas liquids pipelines, with operations in 17 states across major producing regions, and leads the midstream segment as one of the largest natural gas liquids producers and marketers and one of the largest natural gas processors in the U.S. Denver, Colorado based DCP is managed by its general partner, DCP Midstream GP, LP, which is managed by its general partner, DCP Midstream GP, LLC, which is 100% owned by DCP Midstream, LLC. DCP Midstream, LLC is a joint venture between Enbridge and Phillips 66. For more information, visit the DCP Midstream, LP website at www.dcpmidstream.com.
CAUTIONARY STATEMENTS
This press release may contain or incorporate by reference forward-looking statements as defined under the federal securities laws regarding DCP Midstream, LP, including projections, estimates, forecasts, plans and objectives. Although management believes that expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to be correct. In addition, these statements are subject to certain risks, uncertainties and other assumptions that are difficult to predict and may be beyond DCP's control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, DCP's actual results may vary materially from what management anticipated, estimated, projected or expected. Factors that could cause actual results or events to differ materially from those described in the forward-looking statements are set forth in DCP’s filings with the Securities and Exchange Commission. The forward-looking statements contained herein speak as of the date of this announcement. DCP undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Source: DCP Midstream LP
