TULSA, Okla. and HOUSTON—Williams (NYSE: WMB) and Targa Resources Corp. (NYSE: TRGP) Feb. 13 announced new NGL agreements and NGL pipeline projects that will link the Conway, Kan., and Mont Belvieu, Texas, NGL markets.
Williams will build a 188-mile NGL pipeline, called the “Bluestem Pipeline,” from its fractionator in Conway and the southern terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Okla. Targa will construct a 110-mile extension of Grand Prix from southern Oklahoma into the Sooner Trend oil field, Anadarko basin, Canadian and Kingfisher counties in the Stack region of Central Oklahoma where it will connect with Williams’ new Bluestem Pipeline.
“We are pleased to partner with Targa on this NGL infrastructure solution,” said Alan Armstrong, president and CEO of Williams. “Expanding our NGL pipeline business to interconnect with Targa’s strategically-positioned Grand Prix Pipeline will provide Williams and our customers with access to Mont Belvieu while opening up additional markets for Conway. Additionally, this delivers a long-term infrastructure solution for NGLs from our Opal, Echo Springs, Willow Creek and Rocky Mountain Midstream processing complexes while also creating a platform for growth—offering us the opportunity to gain incremental downstream revenues as we expand our G&P business.”
“We are very pleased to be working with Williams to enhance market access for NGLs,” said Joe Bob Perkins, CEO of Targa. “The further expansion of our Grand Prix NGL Pipeline into the Stack is an attractive extension of a highly strategic asset for Targa and will direct significant incremental NGLs over the long-term from Williams and other third parties to Grand Prix and to our downstream assets in Mont Belvieu and Galena Park.”
In connection with this project, Williams has committed to Targa significant volumes which Targa will transport on Grand Prix and fractionate at Targa’s Mont Belvieu facilities. Williams will also have an initial option to purchase a 20% equity interest in one of Targa’s recently announced new fractionation trains 7 or 8 in Mont Belvieu.
Targa’s Grand Prix extension will have an initial capacity of approximately 120,000 barrels per day and is expected to cost approximately $200 million. Targa and Williams are targeting an in-service date of first-quarter 2021 for both the Grand Prix extension and the new Bluestem Pipeline. As part of the project, Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL Storage facility. Williams expects its investment in these NGL logistics projects to be $350 million to $400 million.
Recommended Reading
Things Get ‘Awkward’ For Rice Brothers Thanks To EQT Feud
Daniel Rice, former CEO of Rice Energy who now sits on the EQT board, addressed the elephant in the room earlier this month at Hart Energy’s Energy Capital Conference.
KLX Energy Services Expands With $82 Million Worth Of Acquisitions
The acquisitions included the purchase of Red Bone Services and Tecton Energy Services, two oilfield service companies KLX Energy Services CEO says provide significant cross-selling opportunities.
TechnipFMC To Form Two Independent Companies Through Spinoff
TechnipFMC determined the spinoff was in the best interest of the company and all of its stakeholders after a comprehensive review, says CEO Doug Pferdehirt.