DCP Midstream has signed long-term gas gathering and processing agreements with Pioneer Natural Resources USA, Reliance Eagleford Upstream Holding and Newpek (Pioneer JV), under which DCP will provide midstream services in Texas.
The midstream services will be provided for handling the liquid-rich natural gas from the Pioneer JV’s acreage in the Eagle Ford shale play in south central Texas.
The agreement covers the gathering, processing, fractionation and marketing services of raw natural gas and gas liquids by DCP Midstream for the Pioneer JV’s Eagle Ford shale production from more than 300,000 gross acres.
In addition to the Pioneer JV acreage, DCP Midstream has also executed a long-term gathering and processing agreement with a privately held producer for 33,000 acres of Eagle Ford development in Wilson and Karnes counties.
DCP Midstream will construct approximately 130 miles of 16-, 20- and 24-inch gathering pipelines that will connect the Pioneer JV’s and the privately held producer’s central gathering points in south central Texas and other gas supply to DCP Midstream’s existing area gathering and processing facilities.
In addition, DCP Midstream is planning to construct a sixth plant (Eagle gas plant) of 200mmcf/d capacity and related natural gas liquids infrastructure, which is expected to be online in third quarter 2012.