Covering more than 1,500 miles, Sand Hills and Southern Hills are delivering to growing Gulf Coast markets
DENVER, June 17, 2013 – DCP Midstream, Phillips 66 (NYSE: PSX) and Spectra Energy (NYSE: SE) today announced that the Sand Hills and Southern Hills natural gas liquids pipelines are in service. DCP Midstream, Phillips 66 and Spectra Energy each own a one-third interest in the pipeline entities.
•The 720-mile Sand Hills NGL Pipeline is transporting NGLs from production in the Permian Basin and Eagle Ford Shale.
•The 800-mile Southern Hills NGL Pipeline is transporting NGLs from production in the Midcontinent.
“Sand Hills and Southern Hills provide a solution to the critical need for vital transportation capacity from key liquids producing regions,” said Wouter van Kempen, chairman, president and chief executive officer of DCP Midstream. “DCP Midstream will have an integrated NGL pipeline system, consisting of Sand Hills and Southern Hills as well as our interests in the Front Range and Texas Express pipelines, that connect our gathering and processing systems located in most of the major liquids-rich and oil-driven shale plays to growing Gulf Coast markets. As the nation's No. 1 NGL producer, the No. 2 natural gas gatherer and processor, and the No. 3 NGL pipeline operator, DCP Midstream can offer customers superior value and services across the midstream value chain.”
The Sand Hills and Southern Hills NGL pipelines began taking flows in the fourth quarter of 2012 and first quarter of 2013, respectively, and are on budget and ahead of schedule.
Sand Hills NGL Pipeline
The Sand Hills NGL Pipeline provides takeaway service from DCP Midstream and third-party plants in the Permian and the Eagle Ford to fractionation facilities along the Texas Gulf Coast and the Mont Belvieu, Texas, market hub. The pipeline will ramp up to a capacity of more than 200,000 barrels per day after completion of initial pump stations. Further capacity increases to 350,000 bbl/d are possible with the installation of additional pump stations.
Sand Hills was developed to meet growing demand in the Permian and Eagle Ford, where DCP Midstream has a significant gathering and processing footprint. In the Permian, DCP Midstream is the largest producer of NGLs and has processing capacity of 1.3 billion cubic feet per day. In addition, the Rawhide Plant will add 75 million cubic feet per day of processing capacity when it goes into service in the middle of 2013. In the Eagle Ford, DCP Midstream and its master limited partnership, DCP Midstream Partners, have integrated assets that include seven processing plants, which will have processing capacity of 1.2 Bcf/d with the completion of the Goliad Plant in the first quarter of 2014.
Southern Hills NGL Pipeline
Southern Hills NGL Pipeline provides takeaway service from DCP Midstream and third-party plants in the Midcontinent to fractionation facilities along the Texas Gulf Coast and the Mont Belvieu market hub. The pipeline will ramp up to a capacity of 175,000 bbl/d after completion of planned pump stations.
This critical piece of midstream infrastructure provides improved market access for growing Midcontinent NGL production, where DCP Midstream has a leading position as a gatherer and processor with approximately 2 Bcf/d of processing capacity.
About DCP Midstream
DCP Midstream LLC leads the midstream segment as the second-largest natural gas gatherer and processor, the largest natural gas liquids producer and one of the largest marketers in North America. DCP Midstream operates in 18 states across major producing regions. The company is a 50:50 joint venture between Spectra Energy and Phillips 66. It owns the general partner of DCP Midstream Partners LP, a master limited partnership, and provides operational and administrative support to the partnership. DCP Midstream is the largest oil and gas company and the largest private company in Denver, the city of its headquarters, and is the Top Company Winner for Energy/Natural Resources in Colorado as recognized by ColoradoBiz. For more information, visit the DCP Midstream website at www.dcpmidstream.com.
About Phillips 66
Built on more than 130 years of experience, Phillips 66 is a growing energy manufacturing and logistics company with high-performing Midstream, Chemicals, Refining, and Marketing and Specialties businesses. This diverse portfolio enables Phillips 66 to capture opportunities in a changing energy landscape. Headquartered in Houston, the company has 13,500 employees who are committed to operating excellence and safety. Phillips 66 is a Fortune 5 company with $51 billion of assets as of March 31, 2013. For more information, visit www.phillips66.com or follow us on Twitter @Phillips66Co.
About Spectra Energy
Spectra Energy Corp (NYSE: SE), a FORTUNE 500 company, is one of North America's premier pipeline and midstream companies. Based in Houston, Texas, the company’s operations in the United States and Canada include more than 22,000 miles of natural gas, natural gas liquids, and crude oil pipelines, approximately 305 billion cubic feet (Bcf) of natural gas storage, as well as natural gas gathering and processing, and local distribution operations. The company also has a 50 percent ownership in DCP Midstream, the largest producer of natural gas liquids and one of the largest natural gas gatherers and processors in the United States. Spectra Energy has served North American customers and communities for more than a century. The company’s longstanding values are recognized through its inclusion in the Dow Jones Sustainability World and North America Indexes and the Carbon Disclosure Project's Global 500 and S&P 500 Carbon Disclosure Leadership Indexes. For more information, visit www.spectraenergy.com.
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CONTACTS
DCP Midstream
Lisa Newkirk (media)
303-605-1837
24-Hour: 303-829-1953
Andrea Attel (investors)
303-605-1741
Phillips 66
Dean Acosta (media)
832-765-1027
dean.acosta@p66.com
Rosy Zuklic (investors)
832-765-2297
rosy.zuklic@p66.com
Spectra Energy
Phil West (media)
713-627-4964
prwest@spectraenergy.com
24-hour: 713-627-4747
Roni Cappadonna (investors)
713-627-4778
vacappadonna@spectraenergy.com
CAUTIONARY STATEMENTS
This press release contains forward-looking statements as defined under the federal securities laws, including projections, plans and objectives. Although the companies believe 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 the companies’ control. If one or more of these risks or uncertainties materialize, or if underlying assumptions prove incorrect, actual results may vary materially from what the companies anticipated, estimated, projected or expected. The key risk factors that may have a direct bearing on the forward-looking statements are described in the filings that each company makes with the Securities and Exchange Commission. In light of these risks, uncertainties and assumptions, the events described in the forward-looking statements might not occur or might occur to a different extent or at a different time than as described. All forward-looking statements in this release are made as of the date hereof and the companies undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. |