DCP Midstream LP has announced an additional large-scale expansion of the Sand Hills NGL Pipeline, with plans to initially spend $105 million towards long-lead equipment and right-of-way.
This expansion is designed to initially increase capacity by 85 Mbpd up to 450 Mbpd. This first phase will include partial looping of the pipeline and the addition of seven new pump stations at an estimated total cost of $500 million. The expected in-service date is the second half of 2018. Additionally, future expansion may include adding a full loop of Sand Hills, which could raise capacity by over 100 Mbpd to a minimum of 550 Mbpd.
In January, DCP Midstream announced plans to expand the Sand Hills Pipeline’s existing capacity to 365 Mbpd, which is on target to be finished in the fourth quarter of 2017. This expansion will add three additional pump stations and a lateral to increase Permian capacity and is backed by long-term, third party plant dedications. In addition, multiple new supply connectors are in progress and will deliver incremental NGL volumes in 2017 and beyond.