Enterprise Products Partners L.P. (EPD: Quote), Anadarko Petroleum Corp. (APC: Quote) and DCP Midstream, LLC announced an agreement to design and construct a new natural gas liquids or "NGL" pipeline that will originate in the Denver-Julesburg Basin or "DJ Basin" in Weld County, Colorado and extend approximately 435 miles to Skellytown, Texas in Carson County.
Enterprise Products stated that each party will hold a one-third interest. The company noted that the new Front Range Pipeline, with connections to the Mid-America Pipeline system and the recently announced Texas Express Pipeline, will help producers in the DJ Basin maximize the value of their NGL production by providing reliable takeaway capacity and market access to the Gulf Coast, the largest NGL market in the United States.
Initial capacity on Front Range is expected to be approximately 150,000 barrels per day or "BPD", which can be readily expanded to approximately 230,000 BPD. Enterprise stated that it will construct and operate the pipeline, which is expected to begin service in the fourth quarter of 2013.
In a separte press release, DCP Midstream Partners LP (DPM: Quote) announced that it has acquired a 10 percent ownership interest in the Texas Express Pipeline or TEP from Enterprise Products Partners L.P., representing an approximate investment of $85 million in the joint venture.
DCP Midstream stated that Enterprise and Enbridge Energy Partners, L.P. will each own a 35 percent interest in the joint venture, while Anadarko Petroleum will have a 20 percent stake. Additionally, DCP Midstream Partners affiliate, DCP NGL Services, LLC, has committed 20,000 barrels per day or "BPD" to TEP, increasing total long term shipper commitments on TEP from 232,000 BPD to 252,000 BPD.
| || |
| To receive FREE breaking news email alerts for DCP Midstream Partners and others in your portfolio|
by RTT Staff Writer
For comments and feedback: email@example.com