Targa to build new Permian basin NGL pipeline
Targa Resources Corp. plans to build the Daytona NGL pipeline as an addition to its common-carrier 550,000-b/d Grand Prix NGL pipeline system. Daytona will transport NGLs from the Permian basin to the 30-in. OD Grand Prix segment in North Texas for further delivery to Targa’s 963,000-b/d fractionation and storage complex in Mont Belvieu, Tex.
The company expects Daytona to be in service by end-2024 at a cost of $650 million. Grand Prix Pipeline LLC, of which Targa owns 75% and Blackstone Energy Partners LP 25%, will own the Daytona pipeline and each will fund its respective share of the pipeline’s cost based on ownership percentage. Targa will build and operate the pipeline and expects to fund construction through operating cash flows and available liquidity.
During third-quarter 2022, Targa began operations at its new 275-MMcfd Legacy plant in Midland basin and its new 230-MMcfd Red Hills VI plant in Delaware basin. Construction continues on Targa’s 275-MMcfd Legacy II plant and 275-MMcfd Greenwood plant in Midland basin, its 275-MMcfd Midway plant in Delaware basin, and its 120,000-b/d Train 9 fractionator in Mont Belvieu (OGJ Online, Aug. 9, 2022).
Earlier this month, Targa announced plans for the new 275-MMcfd Wildcat II cryogenic natural gas processing plant in Delaware basin, expected to begin operations first-quarter 2024.
Christopher E. Smith | Editor in Chief
Christopher brings 27 years of experience in a variety of oil and gas industry analysis and reporting roles to his work as Editor-in-Chief, specializing for the last 15 of them in midstream and transportation sectors.