Spectra Energy along with its partners DCP Midstream and Phillips 66 has commenced operations at the Sand Hills and Southern Hills natural gas liquids (NGLs) pipelines in Texas, US.
Each of the three companies owns one-third interest in the two pipelines.
The 720-mile long Sand Hills pipeline is supplying NGLs produced in the Permian Basin and Eagle Ford Shale, while the 800-mile long Southern Hills pipeline will transmit NGLs produced in the Midcontinent.
DCP Midstream chairman, president and chief executive officer Wouter van Kempen said, "Sand Hills and Southern Hills provide a solution to the critical need for vital transportation capacity from key liquids producing regions."
Sand Hills pipeline is transporting NGLs from DCP’s and third party plants in the Permian and the Eagle Ford to fractionation facilities along the Texas Gulf Coast and the Mont Belvieu, in Texas, market hub.
The pipeline will have a capacity of over 200,000 barrels per day (bpd) after initial pump stations, while the capacity can further be increased to 350,000bpd with the installation of additional pump stations.
Southern Hills pipeline will transmit NGLs from DCP’s and third-party plants in the Midcontinent to fractionation facilities along the
Texas Gulf Coast and the Mont Belvieu market hub.
The pipeline will have a capacity of 175,000bpd after completion of planned pump stations.
Sand Hills and Southern Hills NGL pipelines have started taking flows in the fourth quarter of 2012 and first quarter of 2013 respectively.