Trunkline Gas, a subsidiary of Southern Union Company, has signed a precedent agreement with DCP Midstream to provide long-term, firm transportation service on a portion of Trunkline's pipeline system in South Texas.
Trunkline Gas will file with the Federal Energy Regulatory Commission (FERC) to make changes to the southernmost segment of its pipeline in Texas to provide DCP with transportation service for liquids-rich gas from the Eagle Ford shale in South Texas.
As proposed, Trunkline will isolate its South Texas system at the Edna compressor station in Jackson County, Texas, and modify its facilities to allow bi-directional flow and the transportation of liquids-rich gas.
In addition, Trunkline will seek FERC approval to make certain gas quality changes in its gas tariff.
DCP has five gas processing plants in South Texas, three of which can currently access Trunkline Gas, and it plans to build pipelines to connect its remaining two South Texas plants to the Trunkline Gas system.