New Pipeline Extension Connects Two Biggest U.S. Propane Hubs

The Southern Hills Pipeline is currently 580 miles long, and a major part of the propane scene in the U.S. (image: newmexicoindependent.com)

DCP Midstream, the largest natural gas liquids producer and one of the largest propane marketers in the country, announced it has acquired the Seaway Products Pipeline Company and plans to expand transportation capacity between America’s two biggest propane hubs, Mont Belvieu, Texas, and Conway, Kansas.

By extending the newly renamed Southern Hills Pipeline by 130 miles on the Conway end and 30 miles on the Mont Belvieu end, DCP expects the common carrier pipeline to create an opportunity for growth throughout the Midcontinent region and the Rockies. With a target capacity of nearly 150,000 barrels of NGLs per day, the pipeline will connect several processing plants and third-party NGL producers. DCP officials believe it will also help meet the needs of Mont Belieu’s growing market and increase the propane supply in Conway.

“The Southern Hills conversion is a game changer for Midcontinent NGL values and a strategic fee-based value chain extension for DCP. This critical piece of the midstream infrastructure puzzle will increase the value our producers realize for their growing Rockies and Midcontinent NGL production through enhanced connectivity to premium Gulf Coast markets,” said Tom O’Connor, chairman, president and CEO of DCP Midstream.

“And, with the ability to provide our customers with integrated gathering, processing and NGL transportation services through a timely solution that leverages pipe already in place, DCP’s competitive position is significantly improved,” he added.