Enterprise Products Partners LP (NYSE: EPD), Anadarko Petroleum Corp. (NYSE: APC) and DCP Midstream LLC announced a joint venture to build the 435-mile Front Range natural gas liquids (NGL) pipeline in the DJ basin. The partners will each hold a one-third interest in the pipeline, which will run from Weld County, Colo. to Skellytown, Texas.
The Front Range pipeline will connect to the Mid-America pipeline and the Texas Express pipeline, providing shippers with access to the Gulf Coast. Depending on shipper interest from the binding open commitment period, initial capacity on the system is expected to be approximately 150,000 barrels per day (b/d), which can be readily expanded to approximately 230,000 b/d. 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,” Michael A. Creel, Enterprise president and chief executive officer, said in a news statement. “The Front Range project is anchored by NGL volumes produced from facilities operated by affiliates of Anadarko and DCP Midstream.”
“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. When combined with the recent announcement by Western Gas Partners, LP to construct the Lancaster Plant in the DJ Basin, Front Range provides significant value to Anadarko and its stakeholders,” Danny Rea, Vice-President of Midstream for Anadarko, added. “We are pleased to have the opportunity to partner with two quality companies like DCP and Enterprise in the Front Range project.”
Bill Waldheim, president of DCP Midstream’s NGLs, Gas and Crude Oil Logistics business unit, said, “The DJ Basin for several years has been an attractive liquids-rich resource. Now, with the introduction of horizontal drilling and this new phase of oil-driven development, the volumes and the infrastructure needs are accelerating. In anticipation of growing volumes, DCP remains focused on the liquids transportation needs of the basin. 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.”
The open season began on April 12 and will continue until May 14. Requests for additional information may be directed to Buford Barr at (713) 381-8354 or bbarr@eprod.com, as well as Bryan McFarland at (713) 381-2468 or bmcfarland@eprod.com.
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