SemGroup® Corporation and DCP Midstream have launched a supplemental open season for NGL transportation service on the Wattenberg Pipeline, White Cliffs Pipeline, and Southern Hills Pipeline, which will connect Weld County, Colorado to Mont Belvieu, Texas. The extension is due to ongoing shipper interest.
SemGroup is currently converting a portion of White Cliffs to NGL service and expects it to be in service in the fourth quarter of 2019. When combined with Southern Hills Pipeline, the system provides DJ Basin customers with increased NGL takeaway capacity and open access to the Texas Gulf Coast markets.
SemGroup owns 51 percent of White Cliffs Pipeline and is the operator. DCP owns 100 percent of Wattenberg Pipeline and 66 percent of Southern Hills Pipeline, and is the operator of both pipelines.
Service will be provided under a published joint tariff between the two carriers. The open season will provide prospective shippers an opportunity to make long-term ship-or-pay volume commitments by executing transportation services agreements with White Cliffs and DCP, in exchange for incentive transportation rates.