Targa Resources Corp. today announced it has entered into long-term fee-based agreements for natural gas gathering and processing services in the Delaware Basin and for downstream transportation, fractionation and other related services. The company also announced an extension of the Grand Prix NGL Pipeline, a new common carrier NGL pipeline currently under construction, into southern Oklahoma.
Delaware Basin Processing Expansions
Supported by the significant near-term volume growth expected on the dedicated acreage, Targa will build approximately 220 miles of 12-to-24 inch high pressure rich gas gathering pipelines across the Delaware Basin, the Falcon Plant, a new 250 MMcf/d cryogenic natural gas processing plant that is expected to commence operations in the fourth quarter of 2019, and the Peregrine Plant, a second 250 MMcf/d cryogenic natural gas processing plant that is expected to commence operations in the second quarter of 2020.
Grand Prix NGL Pipeline Extension into Oklahoma
The Grand Prix extension into Oklahoma will be anchored by significant long-term commitments for both transportation and fractionation services from Targa’s existing and future processing plants in the Arkoma area in its SouthOK system and from third party commitments, including a significant long-term commitment with Valiant for transportation and fractionation.
Once completed, the Grand Prix NGL Pipeline will run from North Texas, where Permian and Oklahoma volumes will be connected to a 30-inch diameter segment, to Mont Belvieu. Initially, it will be able to transport approximately 450,000 bpd, with the ability to expand to 950,000 bpd. The capacity on the 24-inch diameter pipeline from the Permian Basin to North Texas will be approximately 300,000 bpd per day, with the ability to expand to 950,000 bpd. The capacity from southern Oklahoma to North Texas will vary based on telescoping pipe size.