Targa Eyes Massive Buildout Across Permian in 2026

---

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

---

Summary

Targa is gearing up for a series of growth projects across the Permian in 2026, following record-setting production last year.

---

Building on a Blowout Year

Targa Resources Corporation is preparing to expand its natural gas processing and gathering assets, following a banner year. The company saw its volumes in the Permian Basin average a record 6.65 billion cubic feet per day in 2025, up 10% from the previous year. Industrial Info is tracking more than $7.5 billion worth of active and proposed projects from Targa, more than half of which is attributed to projects that Industrial Info believes to have a high probability (81% or more) of beginning construction as scheduled.

"In 2026, we look forward to placing our next three processing plants in service, including Falcon 2 in the Permian Delaware and East Pembrook and East Driver in the Permian Midland," said Jennifer Kneale, the president of Targa, in a quarterly earnings-related conference call. "We continue to expect our new plants will be much needed at startup. Our Falcon 2 plant is expected to come online ahead of schedule and is currently in startup, and our remaining announced plants underway for 2026 and 2027 remain on track."

The second train at the Falcon gas-processing plant was completed earlier this month and is preparing for full production, which is expected to average 275 million standard cubic feet per day, bringing the full plant's capacity to 685 million standard cubic feet per day. Farther east toward the heart of the Permian, the East Pembrook and East Driver plants, each of which are designed to process an average of 275 million standard cubic feet per day, are set to be completed in the second and third quarters, respectively.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Processing Project Database can learn more about these projects--including key components, investment values and necessary equipment--from detailed reports on the Falcon, East Pembrook and East Driver projects.

"We are also ordering long lead items for two additional plants in the Permian planned for early 2028," said Matt Meloy, the chief executive officer of Targa, in the earnings call. "That is eight plants over the next two years, giving us line of sight to an incremental 2.2 billion cubic feet per day of additional processing capacity and gross [natural gas liquids] production of approximately 320,000 barrels per day."

Targa already is constructing Train 11 at its Cedar Bayou Fractionator in Mont Belvieu, Texas, which is expected to be finished this summer, and is preparing to begin construction soon on Train 12 this quarter. Each is designed to produce 150,000 barrels per day (BBL/d) of high-purity butane, propane and ethane for a total plant output of 1.36 million BBL/d. Meloy also announced in the earnings call that Targa will pursue a 13th fractionator at the complex.

Subscribers can learn more from a plant profile and detailed reports on Train 11 and Train 12.

By the Numbers

• More than $7.5 billion: Total investment value of projects from Targa, according to Industrial Info
• 1.36 million BBL/d: Total capacity at Targa's complex in Mont Belvieu, following the project completion of Train 12
• $4.5 billion: Targa's projected capex for full-year 2026

Speedway Leads Big-Ticket Projects

Meloy said executives expect to see significantly lower capital expenditures (capex) "for years to come" following the completion of one of its larger downstream projects, the Speedway NGL Pipeline.

Speedway is designed to transport NGL from its existing and future assets in the Permian Basin to the Mont Belvieu complex. The roughly 500-mile line would carry up to 500,000 BBL/d of NGL (eventually expandable to 1 million BBL/d), with the New Mexico portion running from Lovington, New Mexico, to the border near Seminole, Texas, and the Texas portion running from Seminole to Mont Belvieu. Construction is slated to kick off next year.

Industrial Info also is tracking progress at four pump stations to be built along the line. Subscribers can learn more from detailed reports on the New Mexico and Texas portions, and can search through a list of reports for projects related to the Speedway development.

Targa executives estimate net growth capex to total about $4.5 billion in 2026, including "six new Permian plants, three fractionators in Mont Belvieu, our Speedway NGL Pipeline," and other projects, such as expanded liquefied petroleum gas (LPG)-export capacity at Mont Belvieu. Total maintenance capex in 2026 is expected to be about $250 million.

Meloy said he expects Targa's multiyear growth capital spending will "average around $2.5 billion annually," following the completion of the Speedway project.

Targa's net growth capex for 2025 is estimated between $2.6 billion and $2.8 billion, with net maintenance capex estimated at $250 million.

Subscribers to Industrial Info's GMI Project Database can click here for a full list of detailed reports for active and proposed projects from Targa.

Subscribers can click here for a full list of detailed reports for projects mentioned in this article, and click here for a full list of related plant profiles.

Key Takeaways

• Targa plans to place three processing plants in service in 2026, which "will be much needed at startup."
• The company plans to develop eight processing plants in the Permian Basin over the next two years.
• Executives believe Targa's annual capex could drop from $4.5 billion to $2.5 billion, following completion of Speedway.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR News Intelligence) 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 more than 250,000 current and future projects worth $30.2 trillion (USD).