DCP Midstream Partners To Acquire 10 Percent Ownership Interest In Texas Express Pipeline Joint Venture
DCP Midstream Partners, LP (NYSE: DPM) or the “Partnership” today
announced that it has acquired a 10 percent ownership interest in the
Texas Express Pipeline (“TEP”) from Enterprise Products Partners...
DCP Midstream Partners, LP (NYSE: DPM) or the “Partnership” today announced that it has acquired a 10 percent ownership interest in the Texas Express Pipeline (“TEP”) from Enterprise Products Partners L.P. (NYSE: EPD), representing an approximate investment of $85 million in the joint venture. Going forward, Enterprise and Enbridge Energy Partners, L.P. (NYSE: EEP) will each own a 35 percent interest in the joint venture, while Anadarko Petroleum Corporation (NYSE: APC) will have a 20 percent stake. Additionally, DCP Midstream Partners affiliate, DCP NGL Services, LLC, has committed 20,000 barrels per day (“BPD”) to TEP, increasing total long term shipper commitments on TEP from 232,000 BPD to 252,000 BPD. Originating near Skellytown in Carson County, Texas, the 20-inch diameter TEP mainline will extend approximately 580 miles to Enterprise’s natural gas liquids (“NGL”) fractionation and storage complex at Mont Belvieu, Texas, and will provide access to other third-party facilities in the area. The pipeline will provide much-needed takeaway capacity for producers in West Texas, the Rocky Mountains, southern Oklahoma and the Mid-continent area, giving them access to the largest NGL market along the Gulf Coast and the opportunity to maximize the value of their NGLs. Production from the Rockies, Permian Basin and Mid-continent will be delivered into TEP through Enterprise’s existing Mid-America Pipeline System (“MAPL”), which extends north through Oklahoma into Conway, Kansas and south into the Permian Basin. The pipeline is expected to be completed by the second quarter of 2013. “Underpinned by long-term ship-or-pay transportation agreements, which include unaffiliated shippers, this project will support our continued distribution growth, provide fee-based margins, and further diversify our asset portfolio,” said Mark Borer, president and chief executive officer of DCP Midstream Partners. “Our partnership with Enterprise, Enbridge and Anadarko provides an infrastructure solution for much-needed takeaway capacity and market choices for producers and our general partner, DCP Midstream, LLC.”