Targa Resources Corp. (Targa) has announced plans to construct a new common carrier natural gas liquids (NGL) pipeline from the Permian Basin. Targa’s NGL pipeline (Grand Prix) will transport volumes from the Permian Basin, and also from Targa’s North Texas system, to Targa’s fractionation and storage complex in the NGL market hub at Mont Belvieu (Texas).
The Grand Prix pipeline will be supported by Targa’s volumes and other third-party customer commitments. It is expected to be in service in 2Q19. The capacity of the pipeline will be approximately 300 000 bpd, expandable to 550 000 bpd.
Targa’s current and future natural gas processing plants and third-party connections are expected to generate significant NGL volumes for Grand Prix. Grand Prix is expected to be an attractive and reliable fee-based takeaway solution for NGLs to Mont Belvieu, and will connect to Targa’s fractionation, storage and export assets further downstream.
“We are excited to be moving forward with Grand Prix, which will enhance our ability to move our customers’ volumes from the wellhead in the Permian Basin and North Texas to key petrochemical and export markets,” said Joe Bob Perkins, CEO of the Targa.
“Our ability to offer a highly competitive, fully integrated model, from gathering and processing through transportation and fractionation, to current and future customers should drive continued growth for Targa in both our Gathering and Processing and Downstream segments. One of our key strategic objectives has been to identify attractive opportunities to leverage our growing G&P volumes from one of the best hydrocarbon basins in the world into additional downstream opportunities for Targa and our customers, and Grand Prix is an excellent result of those efforts,” Perkins added.
Total growth capital for Grand Prix is expected to be approximately US$1.3 billion, with approximately US$250 million of spending in 2017. Total 2017 net growth capital spending from Targa’s current list of announced projects is now approximately US$1.2 billion.
Read the article online at: https://www.worldpipelines.com/business-news/29052017/targa-plans-to-construct-pipeline/