DCP Midstream announces that Sand Hills Pipeline has initiated service from the Eagle Ford Shale, offering vital transportation capacity for producers’ growing natural gas liquids volumes.

DCP is opening Sand Hills in phases, with this first segment in South Texas online to provide service for Eagle Ford NGLs. By the end of 2012, DCP will have completed Sand Hills to connect directly into Mont Belvieu.

“When finished, Sand Hills Pipeline will be a major link between the liquids-rich Eagle Ford and Permian producing regions and growing Gulf Coast markets,” Tom O'Connor, chairman and chief executive of DCP Midstream, said in a release. “With Sand Hills, we can offer an integrated NGL takeaway solution to producers, who will enjoy reliable one-stop service. Sand Hills adds to our well positioned assets in the Permian and Eagle Ford producing regions.”

Construction activities continue on the second phase of Sand Hills for Permian Basin service. It’s expected to go into service by the second quarter of 2013.

Sand Hills will consist of approximately 720 miles of 20-inch pipeline with an initial capacity of more than 200,000 barrels (bbl.) per day, which can grow to 350,000 bbl. per day with the installation of additional pump stations.