Enterprise forms partnership to build NGL pipeline from Colorado to Texas
Enterprise Products, Anadarko Petroleum and DCP Midstream have agreed to design and construct a new natural gas liquids (NGL) pipeline that will originate in the Denver-Julesburg Basin (DJ Basin) in Weld County, Colorado, and extend 435 miles to Skellytown, Texas, in Carson County.
Each party will hold a one-third interest.
The new Front Range pipeline (Front Range), with connections to the Mid-America pipeline system and the recently announced Texas Express pipeline, will help producers in the DJ Basin maximize the value of NGL production by providing takeaway capacity and market access to the Gulf Coast, the largest NGL market in the US, officials said.
Depending on shipper interest to an upcoming binding open commitment period, initial capacity on Front Range is expected to be approximately 150,000 bpd, which can be expanded to about 230,000 bpd.
Enterprise will construct and operate the pipeline, which is expected to begin service in the fourth quarter of 2013.
“We are very pleased to partner with Anadarko and DCP on this project, which will extend Enterprise’s integrated pipeline network into the liquids-rich DJ Basin to address the area’s NGL transportation constraints, providing flow assurance and market choice for producers,” said Michael A. Creel, Enterprise CEO.
“The Front Range project is anchored by NGL volumes produced from facilities operated by affiliates of Anadarko and DCP Midstream,” Mr. Creel added.
“With the success and significant growth expected in Anadarko’s liquids-rich Wattenberg HZ (horizontal) program, Front Range will provide needed access to premium markets, which enables us to capture the highest wellhead netbacks,” said Danny Rea, vice president of midstream for Anadarko.
“The DJ Basin for several years has been an attractive liquids-rich resource,” said Bill Waldheim, president of DCP Midstream’s NGLs, gas and crude oil logistics business unit. “Now, with the introduction of horizontal drilling and this new phase of oil-driven development, the volumes and the infrastructure needs are accelerating.
“Given the plant development under way in the DJ, DCP has a strategic need to provide open access transportation services to the higher-valued Mt. Belvieu market,” Mr. Waldheim added.
The binding open commitment period will begins April 12 and continues until May 14.
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