Targa Nears Major Capacity Expansions at Permian, Mont Belvieu

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Researched by Industrial Info Resources (Sugar Land, Texas)--Targa Resources Corporation (NYSE:TRGP) (Houston, Texas) transported and processed a record amount of natural gas from the Permian Basin in the first quarter, and is preparing to expand its pipeline system in the shale play, as well as its processing capacity at its Mont Belvieu complex, to accommodate what is expected to be an historic growth in demand for natural gas and liquefied natural gas (LNG) exports. Industrial Info is tracking more than $3.7 billion worth of active and planned projects from Targa, more than half of which is attributed to plant expansions.

Click on the image at right for a graph detailing Targa's active and proposed projects, by type.

Among Targa's largest projects set to wrap up later this year is its 210-mile Daytona NGL Pipeline, which is designed to carry up to 550,000 barrels per day (BBL/d) of natural gas liquids (NGL) from Targa's Grand Prix system in Midland, Texas, which lies at the heart of the Permian Basin, to its fractionation and storage complex in Mont Belvieu, Texas, which sits on the Gulf Coast. Subscribers to Industrial Info's Global Market Intelligence (GMI) Oil & Gas Pipelines Project Database can learn more from a detailed project report.

"Construction continues on our Daytona NGL pipeline expansion, and we remain on track to begin operations in the fourth quarter of this year," said Matt Meloy, the chief executive officer of Targa, in a recent earnings-related conference call. "The outlook for NGL supply growth continuing means our Daytona expansion will be much needed to handle incremental barrels."

The Daytona NGL Pipeline will be supported by new pump stations in Midland, Ozona and Seguin, Texas, all of which are expected to be finished alongside the pipeline toward the end of the year. Subscribers can read detailed reports on the Midland, Seguin and Ozona projects.

Another major Permian project, the $150 million Phase II expansion of the Greenwood Natural Gas Processing Plant in Midland, also is expected to wrap up toward the end of the year. The 275 million-standard-cubic-foot-per-day unit, which Meloy said would be "highly utilized" upon completion, will raise the Greenwood complex's total output to 600 million standard cubic feet per day. Subscribers can read more in a detailed project report.

New Mexico's share of the Permian also is represented in Targa's plans: The company expects to finish construction on its $150 million Train II expansion at its Roadrunner Cryogenic Natural Gas Processing Plant in Loving, New Mexico, this summer. The 230 million-standard-cubic-foot-per-day unit will raise the Roadrunner facility's total output to 460 million standard cubic feet per day. Subscribers can learn more from a detailed project report.

At the Mont Belvieu complex, Targa is putting the finishing touches on its $450 million Train 9, which is expected to produce 120,000 BBL/d of high-purity butane, propane and ethane, and expects to finish its $500 million Train 10, also expected to produce 120,000 BBL/d, toward the end of first-quarter 2025. Together, the projects will bring Mont Belvieu's total NGL output to 1.06 million BBL/d. Subscribers can read detailed reports on Train 9 and Train 10.

"We are currently starting up our new fractionator in Mont Belvieu, Train 9, and expect it to be highly utilized," Meloy said. "We expect to restart our Gulf Coast Fractionators joint venture during the second quarter, which we also expect our portion of the capacity to be highly utilized at startup. Construction continues on our Train 10 fractionator, which is also expected to be much needed when it comes online."

Gulf Coast Fractionators LP is a joint venture among Targa, Phillips 66 (NYSE:PSX) (Houston) and EnLink Midstream (NYSE:ENLC) (Dallas, Texas). Its 145,000-BBL/d NGL fractionation plant in Mont Belvieu is undergoing a $65 million restart, which is expected to be completed in the coming weeks. Subscribers can read more in a detailed project report.

"Our outlook for increasing NGL production growth at Mont Belvieu supports us efficiently moving forward with Train 11, a new, 150,000-barrel-per-day fractionator," Meloy said. "Train 11 is expected to begin operations in the third quarter of 2026, and the capital associated with Train 11 was already included in our expectations for spending that we provided publicly for both 2024 and 2025." Subscribers can learn more about Train 11 in a detailed project report.

Subscribers to Industrial Info's GMI Project and Plant databases 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.

Subscribers can click here for a full list of reports for active and planned 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) platform 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 200,000 current and future projects worth $17.8 trillion (USD).