Natural Gas and NGL Markets
The Northern Louisiana system has numerous market outlets for the natural gas that we gather on the
system. Our natural gas pipelines connect to the Perryville Market Hub, a natural gas marketing hub that
provides connection to four intrastate or interstate pipelines, including pipelines owned by Southern Natural
Gas Company, Texas Gas Transmission, LLC, CenterPoint Energy Mississippi River Transmission Corporation
and CenterPoint Energy Gas Transmission Company. In addition, our natural gas pipelines in northern
Louisiana also have access to gas that flows through pipelines owned by Texas Eastern Transmission, LP,
Crosstex LIG, LLC, Gulf South Pipeline Company, Tennessee Natural Gas Company and Regency Intrastate
Gas, LLC. The Northern Louisiana system is also connected to eight major industrial end-users and makes
deliveries to three power plants. The NGLs extracted from the natural gas at the Minden processing plant are
delivered to our Black Lake pipeline through our Minden NGL pipeline. The Black Lake pipeline delivers
NGLs to Mt. Belvieu. The NGLs extracted from natural gas at the Ada processing plant are sold at market
index prices to affiliates and are delivered to third parties’ trucks at the tailgate of the plant.
The Southern Oklahoma system has access to a mix of mid-continent pipelines including OGT, Southern
Star, and NGPL, and markets through DCP Midstream, LLC owned processing plants.
The Colorado system gathers, compresses and redelivers unprocessed gas to the third party Meeker plant.
The Wyoming system delivers to the Kinder Morgan Interstate Gas Transmission interstate pipeline. The
NGLs on the Wyoming system are transported on the ConocoPhillips-owned Powder River Pipeline.
The Michigan system delivers Antrim Shale gas to our four treating plants: the South Chester Treating
Complex and the Warner, Turtle Lake and East Caledonia plants. Antrim Shale natural gas requires treating in
order to meet downstream gas pipeline quality specifications. The treated gas is transported away from the
tailgate of the plant. The Bay Area pipeline delivers fuel gas to a third party power plant owned by Consumers
Energy. The Jackson Pipeline is operated by Consumers Energy and connects several intrastate pipelines with
the Eaton Rapids gas storage facility. The Litchfield pipeline is operated by ANR Pipeline Company and
facilitates receipts or deliveries between ANR Pipeline Company and the Eaton Rapids storage facility.
The Discovery assets have access to downstream pipelines and markets including Texas Eastern
Transmission Company, Bridgeline, Gulf South Pipeline Company, Transcontinental Gas Pipeline Company,
Columbia Gulf Transmission and Tennessee Gas Pipeline Company, among others. The NGLs are fractionated
at the Paradis fractionation facilities and delivered downstream to third-party purchasers. The third party
purchasers of the fractionated NGLs consist of a mix of local petrochemical facilities and wholesale distribution
companies for the ethane and propane components, while the butanes and natural gasoline are delivered and
sold to pipelines that transport product to the storage and distribution center near Napoleonville, Louisiana or
other similar product hub.
The East Texas system delivers gas primarily through its Carthage Hub which delivers residue gas to ten
different interstate and intrastate pipelines including CenterPoint Energy Gas Transmission, Texas Gas
Transmission, Tennessee Gas Pipeline Company, Natural Gas Pipeline Company of America, Gulf South
Pipeline Company, Enterprise, Energy Transfer and others. Certain of the lighter NGLs, consisting of ethane
and propane, are fractionated at the East Texas facility and sold to regional petrochemical purchasers. The
remaining NGLs, including butanes and natural gasoline, are purchased by DCP Midstream, LLC and shipped
on the Panola NGL pipeline to Mt. Belvieu for fractionation and sale.
The Southeast Texas system has numerous natural gas market outlets and delivers residue gas into various
interstate and intrastate pipelines, including the TETCO and Sabine pipelines. The Southeast Texas system
makes NGL market deliveries directly to Exxon Mobil and to Mt. Belvieu via our Black Lake NGL pipeline.
The Eagle plant will be connected to the Trunkline Gas pipeline system. Liquids rich gas will be received
from several of DCP Midstream, LLC’s gathering systems by Trunkline for delivery into the Eagle plant.
Residue gas will also be redelivered to Trunkline at the tailgate of the Eagle plant.
Customers and Contracts
The primary suppliers of natural gas to our Natural Gas Services segment are a broad cross-section of the
natural gas producing community. We actively seek new producing customers of natural gas on all of our
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