Targa Resources Corp. (NYSE: TRGP) said it plans to build a new common carrier NGL pipeline, the Grand Prix, from the Permian Basin to the Mont Belvieu, Texas, hub.
Grand Prix, with initial capacity of 300,000 barrels per day (Mbbl/d) will also move NGL from Targa’s North Texas system to Mont Belvieu. The new line will be supported by volumes Targa and third-party customer commitments, and is expected to be in service in second-quarter 2019. The line will be expandable to 550 Mbbl/d.
Targa has about 1.7 Bcf/d of natural gas processing capacity in the Permian Basin, with 0.7 Bcf/d of processing capacity being added in both the Midland and Delaware basins. Those operations are expected to generate significant NGL volumes for Grand Prix.
“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, Targa’s CEO. “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.”
Grand Prix is expected to cost about $1.3 billion, with about $250 million scheduled to be spent in 2017. Total 2017 net growth capital spending from Targa’s current list of announced projects is now approximately $1.2 billion.
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