Brazos Midstream's Sundance II facility has qualified for a state tax incentive encouraging projects on energy and technology.
Sundance II is a 300-MMcf/d natural gas processing plant in Martin County, Texas, which lies in the Permian Basin.
The project qualified under the Texas Jobs, Energy, Technology and Innovation (JETI) program.
Brazos Midstream expects the plant to create $185 million in capital investment.
“New investment in natural gas processing is essential to meet increasing energy demands," said Texas Governor Greg Abbott in a press release. "Working with innovative industry leaders, we will continue to power growth across critical sectors for a stronger, more prosperous Texas.”
Brazos Midstream owns and operates the largest privately held natural gas midstream network in the Permian. Once built, the facility will increase the company's Midland Basin processing capacity to 500 MMcf/d.
In the JETI program, a partnership is created between a company, the Texas state government and a local school district. Through JETI, a company receives a 10-year school district and maintenance and operations tax appraised value limitation in return for capital investment and job creation.
Along with the state, Brazos is partnering with Stanton Independent School District, located in Martin County.
"With support from the state through incentive structures such as the JETI program, Brazos Midstream hopes to further leverage its existing large-scale energy infrastructure by building gas processing facilities located in Texas to drive additional job creation and economic growth,” said Brazos Midstream CEO Brad Iles.