DCP Midstream Partners LP acquired a 350-mile natural gas liquid (NGL) interstate pipeline system from Buckeye Partners LP for US$22 million.

The system runs from Colorado’s DJ basin, where DCP Midstream is the largest gatherer and processor, to the Conway hub. The pipeline fits in with DCP Midstream’s expansion plans in the DJ basin, where it is currently adding a new natural gas processing plant at its Mewbourn facility and a new natural gas gathering pipeline.

DCP Midstream plans on spending an additional $18 million to connect the pipeline to its current midstream facilities in the DJ basin.

“We believe the acquisition of the NGL pipeline … will benefit our customers by maintaining a critical outlet for increased NGL production in the DJ basin,” Tom O’Connor, chairman, president and chief executive officer of DCP Midstream said. – Frank Nieto