SemGroup® Corporation and DCP Midstream, LP today announced a binding open season for natural gas liquids (NGL) transportation service on the White Cliffs Pipeline and Southern Hills Pipeline, which will connect Weld County, Colorado to Mont Belvieu, Texas. The project is expected to be in service in 4Q19 and will provide DJ Basin customers with increased NGL takeaway capacity and open access to the Texas Gulf Coast markets.
SemGroup recently announced it is converting a portion of the White Cliffs Pipeline system to NGL Y-grade service connecting the DJ Basin to Cushing, Oklahoma. To complete the project, DCP Midstream will construct a 25 mile pipeline in the DJ Basin, connecting its system to White Cliffs, and SemGroup will construct a 12 mile extension of White Cliffs Pipeline south of Cushing to interconnect with Southern Hills Pipeline. The project is backstopped by 10-year agreements with DCP Midstream, LP and its affiliate DCP Southern Hills Pipeline, LLC. SemGroup owns 51% of White Cliffs Pipeline and is the operator. DCP owns 66% of Southern Hills Pipeline and is the operator.
Shippers will move product under a published joint tariff between the two carriers. The open season is being held to provide prospective shippers an opportunity to receive discount transportation rates in exchange for long-term volume commitments. Open Season will begin at 5 pm Central Time on 24 May 2018, and will conclude at 5 pm Central Time on 25 June 2018.
Read the article online at: https://www.worldpipelines.com/business-news/24052018/open-season-on-existing-capacity-of-ngl-pipeline/