The company is joining the growing list of other midstream stream companies to build a cryogenic processing plant.
The DCP plant, being called the Goliad Plant, is calling Goliad County its home.
DCP Midstream and DCP Midstream Partners purchased 381 acres in western Goliad County in 2011 and permitted the property.
The company is ready to build a 200-million-cubic-feet-per-day processing plant on the site.
According to DCP spokesperson Lisa Newkirk, “civil work is currently underway and the plant will be delivered in January 2013.”
The plant will be assembled on site and will come online during the first quarter of 2014.
At the Dec. 10 Goliad Commissioners Court meeting, the court approved the company’s request for a tax abatement.
“The term is 50/50 for a time frame of seven years, beginning in 2013 and running through 2019,” Goliad County Judge David Bowman said in a phone interview.
That means that DCP will only be required to pay half of its taxes for the next seven years, and if the company expands on the property, it will get an abatement on the expansions; but all abatements end in 2019, no matter when or if an expansion was started.
“This will be an attraction not only for them (DCP Midstream) to expand but for other companies to come,” Bowman said. “We want them to feel like we want them here.”
Additionally, DCP can apply for a 15 percent exemption on the total property value for emission or pollution control equipment under the TCEQ rules.
Newkirk said it is typical of a plant this size to need 20 to 25 full-time people to run it, so there will be job opportunities coming.
The y-grade product coming out of this plant will be transferred into the DCP Sand Hills pipeline and transferred to Mount Belvieu for further fraction.
DCP Midstream is not new to the Eagle Ford Shale, and Newkirk said this is the company’s seventh plant to build in the Eagle Ford.
The company also has a large plant in Jackson County.