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DCP Midstream to expand the Sand Hills pipeline

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World Pipelines,

DCP Midstream, LP (DCP) has announced an additional large scale expansion of the Sand Hills natural gas liquids (NGL) pipeline, with plans to initially spend US$105 million.

In a phased approach, the Sand Hills expansion is set to increase capacity by 85 000 bpd initially, increasing to approximately 450 000 bpd. Once complete, this initial phase is expected to include partial looping of the pipeline and the addition of seven new pump stations at an estimated total cost of US$500 million. The expected in-service date for this additional expansion project is 2H18.

This newly announced expansion will take place in addition to the Sand Hills pipeline’s existing expansion to 365 000 bpd, which is expected to be in service in 4Q17. The existing expansion adds three additional pump stations and a lateral to primarily increase Permian capacity. The expansion to 365 000 bpd is backed by long term, third-party plant dedications. Additionally, multiple new supply connectors are in progress and will deliver incremental NGL volumes in 2017 and beyond.

Future phased expansion may entail adding a full loop of Sand Hills, which could increase capacity to a minimum of 550 000 bpd.

Wouter van Kempen, Chairman, President and CEO of DCP Midstream, commented: “the Sand Hills pipeline has been an incredible success story founded upon being a producer-friendly pipe that offers flexibility and optionality through our multiple delivery points serving the Gulf Coast. With our phased expansion approach, we are able to match capital outlay with supply growth.”

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US pipeline news Gulf of Mexico pipeline news Onshore pipeline news