SemGroup recently announced it is converting a portion of the White Cliffs Pipeline system to NGL Y-grade service connecting the DJ Basin to Cushing, Oklahoma. To complete the project, DCP Midstream will construct a 25 mile pipeline in the DJ Basin, connecting its system to White Cliffs, and SemGroup will construct a 12 mile extension of White Cliffs Pipeline south of Cushing to interconnect with Southern Hills Pipeline. The project is backstopped by 10-year agreements with DCP Midstream, LP and its affiliate DCP Southern Hills Pipeline, LLC. SemGroup owns 51% of White Cliffs Pipeline and is the operator. DCP owns 66% of Southern Hills Pipeline and is the operator.
Shippers will move product under a published joint tariff between the two carriers. The open season is being held to provide prospective shippers an opportunity to receive discount transportation rates in exchange for long-term volume commitments. Open Season will begin at 5 pm Central Time on 24 May 2018, and will conclude at 5 pm Central Time on 25 June 2018.
