SemGroup Corporation announced it will convert a section of the White Cliffs Pipeline system to NGL service, along with expanding the system to connect to markets in Texas. The project is supported by 10-year agreements with DCP Midstream and its affiliate DCP Southern Hills Pipeline.
“We are excited to execute this opportunity with DCP and provide a much-needed market solution to the DJ Basin, while at the same time optimizing White Cliffs to include both crude and NGL capabilities,” said David Minielly, Vice President of SemGroup’s crude operations. “This project provides producers and natural gas processors with a cost-effective and reliable solution to move valuable NGLs from Colorado to Mont Belvieu via Southern Hills Pipeline for processing and sale into the Gulf Coast marketplace.”
SemGroup will convert one of White Cliffs 12-inch-diameter pipelines from crude service to NGL Y-grade service. The pipeline will have an initial capacity of 90,000 bpd and be expandable up to 120,000 bpd. It will be taken out of service late in the first quarter of 2019 and is expected to resume operations during the fourth quarter of 2019. Also, the company will build a 12-mile extension south of Cushing to interconnect with DCP’s Southern Hills Pipeline and move NGLs to Mont Belvieu, Texas.
The project is expected to cost between $60 million and $66 million.