DCP Midstream LLC and DCP Midstream Partners LP (NYSE: DPM) today announced the construction of a new cryogenic plant that will serve growing demand from producers in the liquids rich and prolific Eagle Ford shale. The new Goliad plant will be constructed and funded by the previously announced DCP Eagle Ford Joint Venture formed 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 per day. It will become part of the DCP Eagle Ford system providing Eagle Ford producers one-stop service from the plant tailgate to the 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 underpinned by 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 and the 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,” said 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. It will be part of DCP’s vast, reliable system with:
- More than 900,000 acres supported by long-term agreements,
- About 6,000 miles of gathering systems,
- More than 1 billion cubic feet per day of processing capacity,
- Three fractionators with about 36,000 barrels per day capacity,
- Favorable access to interstate and intrastate gas markets,
- And, access to the Sand Hills pipeline delivering natural gas liquids to Mont Belvieu, Texas, and Gulf Coast petrochemical markets.