Targa Resources Corp. announced today that it has executed agreements to sell a 25% joint venture interest in its previously announced Grand Prix natural gas liquids pipeline to funds managed by Blackstone Energy Partners.
Once completed, Grand Prix will be a new 300 000 bpd common carrier NGL pipeline from the Permian Basin to Mont Belvieu, Texas, and with expansion capability to 550 000 bpd.
Concurrent with the sale of the interest in Grand Prix to Blackstone, Targa and EagleClaw Midstream Ventures, LLC, a Blackstone portfolio company, executed a long-term Raw Product Purchase Agreement for transportation and fractionation services whereby EagleClaw has dedicated and committed significant NGLs associated with EagleClaw's natural gas volumes produced or processed in the Delaware Basin. EagleClaw is the largest private natural gas gathering and processing company in the Delaware Basin based on almost 275 000 dedicated acres primarily in Reeves County.
Targa is expected to realise substantial net capital savings, plus other strategic and financial benefits, through the sale of the 25% interest in Grand Prix to Blackstone. Also, the addition of EagleClaw's volumes for T&F services provides substantial incremental fee-based cash flow to Targa over the long-term. Targa continues to expect Grand Prix to be operational in 2Q19.
Read the article online at: https://www.worldpipelines.com/project-news/05102017/targa-announces-jv-in-grand-prix-pipeline/
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