Reports related to this article:
Project(s): View 5 related projects in PECWeb
Pipeline(s): View 1 related pipeline in PECWeb
Plant(s): View 6 related plants in PECWeb
Released January 04, 2023 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Targa Resources Corporation (NYSE:TRGP) (Houston, Texas) said Tuesday it reached an agreement to acquire full ownership of the Grand Prix natural gas liquids (NGL) pipeline, which connects the midstream company's assets in the Permian Basin, North Texas and Southern Oklahoma to its fractionation and storage facility in Mont Belvieu, Texas. Industrial Info is tracking 41 projects from Targa, worth $2 billion, which includes the planned construction of the Daytona NGL pipeline--an addition to the Grand Prix system.
Targa already owned a 75% interest in the Grand Prix Pipeline and purchased the remaining 25% from Blackstone Energy Partners, the private equity arm of Blackstone Incorporated (NYSE:BX) (New York, New York), for $1.5 billion in cash "plus customary working capital adjustments," according to a related press release. Targa expects the acquisition to close in the first quarter of 2023.
The pipeline has the capacity to transport up to 1 million barrels per day (BBL/d), according to the press release. "The performance of our Grand Prix NGL Pipeline has exceeded expectations since it began full operations in the third quarter of 2019, integrating our leading NGL supply aggregation position in the Permian Basin to key demand markets in Mont Belvieu and along the U.S. Gulf Coast," said Matt Meloy, chief executive officer of Targa.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Asset Database can click here for the Grand Prix pipeline profile.
The company is planning to add to the Grand Prix pipeline system by constructing the Daytona NGL pipeline, which would have 210 miles of 30-inch-diameter pipeline to transport up to 550,000 BBL/d from the Permian and connect with an existing Grand Prix segment that runs to Targa's Mont Belvieu fractionator. Following the recent Grand Prix acquisition, Targa will fully own and operate the pipeline, which is expected to be in service by the end of 2024.
Subscribers to the GMI Pipelines Project Database can click here for more information on the Daytona pipeline.
In its third-quarter earnings-related press release, the company said the plan to construct the Daytona pipeline was "supported by the growth in NGLs from Targa's underlying assets and future plant additions."
In February, Targa plans to kick off the addition of Train #9 at the Mont Belvieu fractionation plant, which would support the Grand Prix Pipeline and add 120,000 BBL/d of high-purity butane, propane and ethane capacity to the plant, for a total of 940,000 BBL/d. Subscribers to the GMI database can click here for the detailed project report, here for a plant profile and here for a profile on the related storage caverns.
Other growth projects from Targa include the construction of three new natural gas processing facilities in the Permian Basin:
Subscribers can click here for a full list of active projects from Targa.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
Targa already owned a 75% interest in the Grand Prix Pipeline and purchased the remaining 25% from Blackstone Energy Partners, the private equity arm of Blackstone Incorporated (NYSE:BX) (New York, New York), for $1.5 billion in cash "plus customary working capital adjustments," according to a related press release. Targa expects the acquisition to close in the first quarter of 2023.
The pipeline has the capacity to transport up to 1 million barrels per day (BBL/d), according to the press release. "The performance of our Grand Prix NGL Pipeline has exceeded expectations since it began full operations in the third quarter of 2019, integrating our leading NGL supply aggregation position in the Permian Basin to key demand markets in Mont Belvieu and along the U.S. Gulf Coast," said Matt Meloy, chief executive officer of Targa.
Subscribers to Industrial Info's Global Market Intelligence (GMI) Pipeline Asset Database can click here for the Grand Prix pipeline profile.
The company is planning to add to the Grand Prix pipeline system by constructing the Daytona NGL pipeline, which would have 210 miles of 30-inch-diameter pipeline to transport up to 550,000 BBL/d from the Permian and connect with an existing Grand Prix segment that runs to Targa's Mont Belvieu fractionator. Following the recent Grand Prix acquisition, Targa will fully own and operate the pipeline, which is expected to be in service by the end of 2024.
Subscribers to the GMI Pipelines Project Database can click here for more information on the Daytona pipeline.
In its third-quarter earnings-related press release, the company said the plan to construct the Daytona pipeline was "supported by the growth in NGLs from Targa's underlying assets and future plant additions."
In February, Targa plans to kick off the addition of Train #9 at the Mont Belvieu fractionation plant, which would support the Grand Prix Pipeline and add 120,000 BBL/d of high-purity butane, propane and ethane capacity to the plant, for a total of 940,000 BBL/d. Subscribers to the GMI database can click here for the detailed project report, here for a plant profile and here for a profile on the related storage caverns.
Other growth projects from Targa include the construction of three new natural gas processing facilities in the Permian Basin:
- Legacy Natural Gas Processing Plant Phase II Expansion in the Permian's Midland Basin. Construction on the 275 million-standard-cubic-foot-per-day train kicked off in July of this year, with completion planned for May 2023; click here for more details.
- Greenwood Natural Gas Processing Plant, also in the Midland Basin. Construction is expected to kick off in May, and the design capacity is 275 million-standard-cubic-feet per day; click here for more details.
- Midway Natural Gas Processing Plant in the Permian's Delaware Basin. The cryogenic processing plant will have a capacity of up to 308 million standard cubic feet per day. Construction is underway, with the completion planned for July; click here for more details.
Subscribers can click here for a full list of active projects from Targa.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
