NGL Demand Pushes Targa to Add Permian Pipelines, Processing

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Written by Will Ploch, Assistant Editor-in-Chief for IIR News Intelligence (Sugar Land, Texas)

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Summary

Lower natural gas prices in the second quarter didn't deter Targa from completing and accelerating several major natural gas transportation and processing projects in the Permian Basin.

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NGL Demand Fuels Pipeline Growth

Targa Resources Corporation started operations at some of its longest-gestating natural gas transportation and processing projects during the second quarter, which saw the company brush off lower commodity prices and accelerate buildouts in the Permian Basin. Industrial Info Resources is tracking more than $7 billion worth of active and proposed projects from Targa, more than half of which is attributed to projects nearing or under construction.

In its Logistics and Transportation segment, Targa reported record-high volumes for natural gas liquid (NGL) transportation, fractionation and liquefied petroleum gas (LPG) exports. According to Industrial Info Resources data, natural gas and NGL pipeline developments account for about two-thirds of the total investment in active and proposed projects.

Following the commencement of operations in the second quarter at its Delaware Express NGL Pipeline expansion, a 100-mile segment that carries natural gas out of the Delaware Basin area of the Permian, Targa is preparing to begin work on several major midstream projects in the coming quarters. These include the Apex Pipeline from Midland County to Jefferson County, Texas, which is designed to carry up to 2 billion cubic feet per day about 563 miles, from the Permian to downstream facilities on the Texas Gulf Coast.

Industrial Info Resources offers more information on these developments in its Global Market Intelligence (GMI) Oil & Gas Pipeline Project Database, where readers can find details--including construction schedules, investment values and necessary equipment--in reports on the Delaware Express and Apex pipelines.

Other midstream projects pursued by Targa include the Speedway NGL Pipeline, which is designed to transport NGL from its existing and future assets in the Permian Basin to the company's Cedar Bayou Fractionator in Mont Belvieu, Texas. Targa completed its addition of Train 11 at Mont Belvieu in the second quarter, which raised NGL production from 1.06 million to 1.18 million barrels per day (bpd).

The Speedway pipeline comprises a 55-mile New Mexico segment and a 425-mile Texas segment, which will originate in Lovington, New Mexico. Readers can learn more from detailed project reports on Mont Belvieu's Train 11 and Speedway's New Mexico and Texas segments.

"We continue to estimate net growth capital expenditures [for full-year 2026] to be approximately $4.5 billion, and our estimate for 2026 net maintenance capital expenditures remains unchanged at approximately $250 million," the company said in a quarterly earnings-related press release.

By the Numbers

• More than $7 billion: Total investment value of active and proposed projects from Targa
• About $4.5 billion: The company's estimated capital expenditures for full-year 2026
• More than 450 million cubic feet per day: Targa's increase in Permian Basin inlet volumes during the second quarter

Pumping Up Permian Production

On the production side, Targa announced it had commenced operations ahead of schedule of at its new East Driver Gas-Processing Plant in Midland, Texas, which is in the heart of the Permian Basin, "in response to increasing production and to meet the infrastructure needs of producers," according to Targa's website. Readers can learn more from a detailed plant profile and project report.

Targa also started construction earlier this year on its Yeti Gas-Processing Plant near Wink, Texas, and its Copperhead Gas-Processing Plant in Jal, New Mexico, both of which are designed to process 275 million standard cubic feet per day from the Delaware Basin. The company also is looking into proposed second phases for Yeti and Copperhead that would double capacity.

Readers can learn more about these developments from profiles of the Yeti and Copperhead plants, and detailed reports on Phase I and Phase II at Yeti, and Phase I and Phase II at Copperhead.

Targa reported record-high natural gas inlet volumes at its Permian Basin assets in the second quarter: "Permian inlet volumes increased more than 450 million cubic feet per day, despite temporary curtailments by certain producer customers in response to negative Waha natural gas prices in the second quarter," the company said in its quarterly earnings release.

Targa's net income for second-quarter 2026 were reported to be $764.6 million, a 21.54% increase from second-quarter 2025. Revenues stood at $4.44 billion, a 4.22% increase.

The Industrial Info Resources GMI Project and Plant databases offer a full list of detailed reports for projects mentioned in this article, and a full list of related plant profiles.

Industrial Info Resources also offers a full list of reports for active and proposed projects from Targa.

Key Takeaways

• Targa started operations at some of its longest-gestating transportation and processing projects in the second quarter.
• The company reported record-high volumes for NGL transportation and LPG exports in the second quarter.
• So far this year, Targa has started construction on several major gas-processing plants in the Permian.

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About Industrial Info Resources
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 verified plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 trillion (USD).