The agreement also calls for DCP to provide a supply option for a proposed new Oxy NGL fractionator in Texas, US.
DCP is in the process of securing right-of-way and environmental permits for the 700-mile Sandhills Pipeline which will transport Y-grade natural gas liquids (NGLs) from gas plants in the Permian Basin and South Texas.
The Sandhills Pipeline will serve the NGL transportation needs of gas processing plants in West Texas and South Texas, including DCP gas plants and the new 200 million cubic feet per day DCP Eagle gas plant.
The Sandhills Pipelinewhich will be operational in 2013.
DCP’s president of northern business unit Bill Waldheim said the company is excited to work with Oxy in securing a right-of-way for the Sandhills Pipeline and to potentially provide a reliable, long-term NGL supply to Oxy’s proposed fractionator.
