Texas Greenlights $185 Million Natural Gas Plant Expansion in Midland Basin

Brazos Midstream is set to invest $185 million in a new natural gas processing plant in Martin County, Texas, as announced by Governor Greg Abbott on Tuesday.

The upcoming facility will process 300 million cubic feet of gas daily, effectively doubling the company's processing capacity in the energy-rich Midland Basin.

This expansion underscores a significant commitment to enhancing Texas's energy infrastructure amid a nationwide surge in natural gas demand.

Governor Abbott emphasized the state's pivotal role in fueling the American economy, stating, "New investment in natural gas processing is essential to meet increasing energy demands."

He highlighted that the expansion "will more than double their natural gas processing capacity in the Midland Basin," and pledged ongoing collaboration with industry leaders to drive growth across critical sectors.

The project qualifies under Texas's Jobs, Energy, Technology, and Innovation (JETI) program, designed to attract energy investments through state incentives.

The Midland Basin, a key segment of the expansive Permian Basin, contributes to 25% of natural gas production in the contiguous United States.

Brad Iles, CEO of Brazos Midstream, described the new Sundance II facility as "mission-critical gas infrastructure."

Once operational, it will elevate the company's combined Midland Basin capacity to 500 million cubic feet per day.

"We are grateful to Governor Abbott, along with the Stanton ISD Board of Trustees, Superintendent Jan McCown, and their hard-working teams, for supporting this project," Iles said.

He added that JETI incentives help leverage existing infrastructure to create jobs and economic growth.

Local officials lauded the investment's regional impact.

Senator Kevin Sparks (R-Midland) referred to Martin County and the Permian Basin as "the backbone of America's energy supply."

Representative Tom Craddick (R-Midland) highlighted the jobs and economic benefits, stating, "The Permian Basin continues to demonstrate why it is the energy capital of the world."

Superintendent Jan McCown of Stanton ISD expressed appreciation for the Governor's support.

The district anticipates economic benefits for local taxpayers from the expanded manufacturing base.

Brazos Midstream operates extensive natural gas gathering and processing infrastructure throughout the region.

The company's footprint spans the prolific Midland Basin oil and gas fields.

In related developments, Phillips 66 recently agreed to acquire Pinnacle Midland for $550 million, enhancing its natural gas gathering and processing capabilities in the Midland Basin.

Additionally, Energy Transfer announced plans to purchase WTG Midstream Holdings for approximately $3.25 billion, further expanding its presence in the Permian Basin.

These strategic moves reflect a broader trend of significant investments aimed at bolstering infrastructure to meet the growing energy demands in the region.

As the Permian Basin continues to play a crucial role in the nation's energy landscape, such developments are poised to drive economic growth and job creation in Texas.