DCP Midstream and DCP Midstream Partners on Friday announced the construction of a new cryogenic plant that will serve growing demand from producers in the liquids rich and prolific Eagle Ford shale in Texas.
The new Goliad plant will be constructed and funded by the previously announced DCP Eagle Ford joint venture formed on Nov. 1, which is owned two-thirds by DCP Midstream and one-third by DCP Midstream Partners.
The Goliad plant will have gas processing capacity of 200 million cubic feet/day and will become part ofthe DCP Eagle Ford system, providing Eagle Ford producers one-stop service from the plant tailgate to Gulf Coast market centers.
The Goliad plant is expected to be completed by the first quarter of 2014.
The DCP Midstream enterprise continues to execute on its impressive slate of growth projects underpinnedby solid contracts in liquids-rich areas, said Wouter van Kempen, president and chief operating officer of DCP Midstream.
Through co-investment with DCP Midstream Partners andthe recent transaction on the pipelines with Phillips 66 and Spectra Energy, we can continue to fund our projects and create value to all our stakeholders.
The Goliad plant is another great example of co-investment with our general partner, added Bill Waldheim, president of DCP Midstream Partners. Including this transaction, this brings our 2012 co-investment to over $1 billion.
Goliad is the seventh plant in South Texas owned by the DCP enterprise.