The pipeline will cover more than 700 miles from West Texas to fractionation and storage facilities along the Texas Gulf Coast including Mont Belvieu.

Sandhills Pipeline will open new capacity for NGLs produced from the Avalon Shale in West Texas and the Eagle Ford Shale in South Texas to be transported to market.

DCP said that this system will relieve the capacity constraints that are currently affecting producers in these regions.

DCP Sandhills Pipeline will have a target capacity of 130,000 barrels per day and the company expects pipeline to enter service in 2013.