Targa Resources Corp. (NYSE: TRGP); NextEra Energy Pipeline Holdings LLC, an indirect, wholly-owned subsidiary of NextEra Energy Resources LLC (NYSE: NEE); WhiteWater Midstream LLC, a portfolio company of Denham Capital Management and Ridgemont Energy Partners; and MPLX LP (NYSE: MPLX), announced Aug. 3 the execution of a letter of intent for the joint development of the proposed Whistler Pipeline Project, which will provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast.
The Whistler Project is designed to transport approximately 2.0 billion cubic feet per day (Bcf/d) of natural gas through approximately 450 miles of 42-inch pipeline from Waha, Texas to NextEra’s Agua Dulce market hub, with an additional approximately 170 miles of 30-inch pipe continuing from Agua Dulce and terminating in Wharton County.
Supply for the Whistler Project will be sourced from multiple upstream connections in both the Midland and Delaware basins, including direct connections to Targa plants through an approximately 27-mile 30-inch pipeline lateral, as well as a direct connection to the 1.4 Bcf/d Agua Blanca Pipeline, a joint venture among WhiteWater, WPX Energy, MPLX and Targa, which crosses through the heart of the Delaware Basin, including portions of Culberson, Loving, Pecos, Reeves, Winkler, and Ward counties.
The Whistler Project would have access to the Nueces Header and premium markets at Agua Dulce, as well as along a northern extension through Corpus Christi to the Houston Ship Channel to serve markets along the Texas Gulf Coast.
Targa, NextEra, MPLX and WhiteWater (and their respective producer customers) would collectively commit volumes in excess of 1.5 Bcf/day to the Whistler Project. The project would begin operation in fourth-quarter 2020, subject to execution of definitive agreements and the receipt of necessary regulatory approvals. The named parties have committed to be exclusive to the project for a period of time sufficient to complete definitive agreements. The Whistler Project will be constructed by NextEra Energy Pipeline Holdings and operated by Targa. The project is expected to be financed at the project level.
In addition to the commitments of the project sponsors and their producer customers, the Whistler Project is in negotiations for additional firm transportation commitments and is expected to launch an open season in the coming months with respect to any remaining firm intrastate transportation capacity.
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