Williams and Targa Resources announced new NGL agreements and pipeline projects that will link the Kansas and Mont Belvieu, Texas, markets.
Williams will build a 188-mile Bluestream Pipeline from its fractionator in Conway, Kan, and the southern terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Okla.
In connection with the project, Williams committed “significant volumes” to Targa for 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 120,000 bpd and is expected to cost $200 million. Targa and Williams are targeting an in-service date in the 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.