The company said it will convert the renamed Southern Hills Pipeline to natural gas liquids service and add extensions to Mont Belvieu, Texas, along with various receipt points in the Midcontinent region and associated gathering infrastructure.

DCP Midstream will create new NGL transportation capacity from the Midcontinent to the premium Texas Gulf Coast markets.

According to the company, the Southern Hills Pipeline is expected to begin operation in 2013 and it will have a target capacity of about 150,000 barrels per day of Y-grade NGLs.

The Southern Hills Pipeline will be operated by DCP Midstream as a common carrier pipeline.