Targa will build a 500-mile NGL pipe in Permian
Targa Resources announced on Tuesday that it will construct a 500-mile natural gas liquids pipeline from its plants located in the Permian basin to its fractionation, storage and distribution complex in Mont Belvieu in Texas.
The Speedway NGL Pipeline will cost approximately $1.6 billion, and have a capacity of 500 thousand barrels a day at first.
The pipeline with a diameter of 30 inches is expected to enter service in the third quarter 2027.
The pipeline operator is also building a natural-gas processing plant called Yeti in the Permian-Delaware basin of Texas. It has a daily capacity of 275 millions cubic feet.
Targa, in addition to the Yeti and the Permian gas processing plant, will have five plants online within two years.
The company said that it would also build a natural gas pipeline of 35 miles to connect several of its processing facilities in the Permian Midland. It will also convert an existing 55-mile pipeline into a natural gas system, creating the Buffalo Run System, which links its Midland and Delaware intrabasin networks.
Targa anticipates that the total capital expenditures net of growth for 2025 will be approximately $3.3 billion.
The company supplies natural gas to the key markets via its network of gathering assets and processing assets in the Permian basin, Eagle Ford Shale, Bakken Shale, and other major U.S. Oil and Gas regions.
The company transports and fractionates NGLs to component products such as ethane and propane.
(source: Reuters)
