Enterprise, Anadarko and DCP Midstream to build new NGL pipeline

HOUSTON, Texas, THE WOODLANDS, Texas and DENVER, Colo. - Enterprise Products Partners L.P., Anadarko Petroleum Corp. and DCP Midstream, LLC on April 12 announced an agreement to design and construct a new natural gas liquids pipeline that will originate in the Denver-Julesburg Basin in Weld County, Colo., and extend approximately 435 miles to Skellytown, Texas, in Carson County.

Each party will hold a one-third interest.

The new Front Range Pipeline, with connections to the Mid-America Pipeline system and the recently announced Texas Express Pipeline, will help producers in the DJ Basin maximize the value of their NGL production by providing reliable takeaway capacity and market access to the Gulf Coast, the largest NGL market in the United States.

Depending on shipper interest to an upcoming binding open commitment period, initial capacity on Front Range 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," said Michael A. Creel, Enterprise president and chief executive officer.

"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," said Danny Rea, vice-president of midstream for Anadarko.

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."

Second fatal gas pipeline explosion rocks Texas in as many days

LUBBOCK, Texas - A day after an accident on an Enterprise pipeline near Cleburne, Texas, claimed one life, a new gas pipeline explosion occurred on June 8 near Darrouzet, a small community in the Texas Panhandle, killing two people and wounding three others.
The blast in Lipscomb County, a few miles from the Oklahoma border and about 270 miles from Lubbock, occurred when a crew that was removing caliche - commonly used in making cement - from a pit for a dirt-contracting company, Lipscomb County Sheriff James Robertson said in a news release. The bulldozer being used by the crew hit the gas pipeline, causing the explosion.
The gas line involved is operated by Denver-based DCP Midstream, which shut off valves leading to the 14-inch pipeline, allowing the fire to burn out about four hours later, spokeswoman Roz Elliott said. She said the pipeline fed one of the company's processing plants.
The two killed were identified as Steven Douglas Odell, 32, and Johnnie Mike Renner, 44, Lipscomb County Sheriff James Robertson said.
In addition, one person was hospitalized in critical condition after the blast and two others were treated and released from a nearby hospital, officials said.

Pipeline blast in Texas shuts down highway after asphalt melts

CARTHAGE, Texas - A gas pipeline explosion at the DCP Midstream gas processing plant rocked the area two miles east of Carthage on U.S. Highway 79 shortly after 10 a.m. on Feb. 11, according to Panola County Chief Deputy David Jeter.
The blast and heat from the resulting fireball damaged the highway, along with nearby vehicles, a home and several private structures.
A second, smaller explosion occurred after first responders arrived, he added.
There were no injuries, but Jeter said it was unlikely U.S. 79 would reopen on Feb. 11. Texas Department of Transportation officials were on the scene to survey road damage caused by heat that melted tar on the pavement, he said.
Authorities evacuated about 20 residents living within one mile of the plant, he said.
A number of companies own gas lines that feed into the processing facility, and it wasn't immediately clear who owns the line that exploded, Jeter said.
About 80 employees work at the plant, which DCP Midstream purchased in 1999, according to spokeswoman Karen Taylor. The investigation could take several days, she said. The company blocked all pipelines feeding into the plant.
Controlled fires continued to burn later on Feb. 11, and Jeter expected the burning to continue to ensure vapors were not released into the air.