Additionally, DCP and Targa have entered an agreement for a long-term anchor commitment by DCP for a new, 100,000 bbl/d fractionation expansion at the Targa-operated and majority-owned Cedar Bayou Fractionators (CBF) facility, as well as a new delivery point and interconnection from the facility to the Sandhills Pipeline.
In November 2010, DCP initiated an open season for the Sandhills Pipeline and is now in the process of securing right-of-way and environmental permits for the project. The new approximately 1,127 km pipeline system will transport Y-grade natural gas liquids (NGLs) from gas plants in the Permian Basin and South Texas to the various fractionator facilities along the Gulf Coast, including Targa’s Cedar Bayou Fractionators (CBF) facility at Mont Belvieu, Texas.
The Sandhills Pipeline will serve the NGL transportation needs of Targa’s gas plants, existing DCP gas plants and the new 200 MMcf/d DCP Eagle gas plant designed to serve Eagle Ford Shale gas development. In addition, DCP is securing long-term commitments from other third-party shippers.
DCP Chairman, President and Chief Executive Officer Tom O’Connor said “We are very excited to work with Targa to provide a new, fee-based NGL transportation and fractionation solution for the increased production of NGLs from West and South Texas. We continue to see a very favourable response to this critical infrastructure solution.”
DCP and CBF are co-ordinating these projects toward a first half of 2013 completion of construction and commencement of operations.