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Released August 12, 2019 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Targa Natural Resources Corporation (NYSE:TRGP) (Houston, Texas) is hiking its projected 2019 capital spending to $2.4 billion, with nearly $1.4 billion already spent in the first half of the year as a slew of growth projects were placed in-service, including processing plants and pipelines in the Permian Basin. Industrial Info is tracking nearly $4.9 billion worth of active projects involving Targa, more than 90% of which is attributed to projects in Texas.
Click on the image at right for a graph detailing Targa's active projects, by industry sector.
Targa's capital spending, increased from $2.3 billion earlier this year, was largely attributed to slightly higher-than-expected expenses associated with the new projects brought into service, which also increased interest, administrative and depreciation expenses for the quarter. Higher operating expenses were driven primarily by gas plant and system expansions in the Permian, which is expected to see two more natural gas-processing units brought online within the next year: the $125 million second train at the Johnson plant in Midland, and the $120 million second train at the Joyce plant in Midkiff.
Each addition is expected to increase its plant's cryogenic natural gas-processing capacity from 200 million to 450 million standard cubic feet per day. Both facilities will sell their product to Pioneer Natural Resources Company (NYSE:PXD) (Irving, Texas). For more information, see Industrial Info's reports on the Johnson and Joyce projects.
Targa is joining other oil and gas companies in constructing pipelines to carry gas out of the exploration-packed Permian Basin to the Gulf Coast for processing and export. In an arrangement with WhiteWater Midstream LLC (Austin, Texas) and MPLX LP (NYSE:MPLX) (Findlay, Ohio), Targa is preparing to begin construction early next year on the Whistler Pipeline Project, which will transport up to 2 billion cubic feet per day of natural gas from Waha, Texas, to NextEra Energy Incorporated's (NYSE:NEE) (Juno Beach, Florida) hub in Agua Dulce, Texas.
Components of the Whistler project include the estimated $725 million mainline and a $60 million lateral, which run 450 miles and 27 miles, respectively. The lateral will supply Whistler via multiple upstream connections in both the Midland and Delaware basins, including direct connections to Targa plants, according to the company. For more information, see Industrial Info's project reports on the mainline and lateral.
Other pipeline projects crisscrossing the Lone Star State include the much-anticipated Grand Prix Pipeline, which recently began sending 150,000 to 170,000 barrels per day of natural gas liquids (NGL) from the Permian to Mont Belvieu. "Our expectation is for volumes to increase to approximately 200,000 barrels per day in September, then further increase over the balance of 2019 as short-term, third-party transportation arrangements continue to roll off and additional gathering and processing facilities come online," Targa said in the press release.
These additional phases include a $120 million extension in northern Texas that will connect four processing plants with Grand Prix's south leg, running about 110 miles, and the $80 million north leg that will connect the mainline with Decatur, Texas, running about 80 miles. For more information, see Industrial Info's project reports on the northern Texas extension and the north leg.
"Our Grand Prix NGL pipeline recently commenced deliveries into Mont Belvieu, realizing the long-run strategic goal of integrating our leading gathering and processing position with our premier NGL logistics, fractionation and export platform," said Joe Bob Perkins, the chief executive officer of Targa, in a quarterly press release. "Grand Prix, combined with our remaining system expansions underway, will drive increasing, largely fee-based, cash flow growth for Targa."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
Click on the image at right for a graph detailing Targa's active projects, by industry sector.Targa's capital spending, increased from $2.3 billion earlier this year, was largely attributed to slightly higher-than-expected expenses associated with the new projects brought into service, which also increased interest, administrative and depreciation expenses for the quarter. Higher operating expenses were driven primarily by gas plant and system expansions in the Permian, which is expected to see two more natural gas-processing units brought online within the next year: the $125 million second train at the Johnson plant in Midland, and the $120 million second train at the Joyce plant in Midkiff.
Each addition is expected to increase its plant's cryogenic natural gas-processing capacity from 200 million to 450 million standard cubic feet per day. Both facilities will sell their product to Pioneer Natural Resources Company (NYSE:PXD) (Irving, Texas). For more information, see Industrial Info's reports on the Johnson and Joyce projects.
Targa is joining other oil and gas companies in constructing pipelines to carry gas out of the exploration-packed Permian Basin to the Gulf Coast for processing and export. In an arrangement with WhiteWater Midstream LLC (Austin, Texas) and MPLX LP (NYSE:MPLX) (Findlay, Ohio), Targa is preparing to begin construction early next year on the Whistler Pipeline Project, which will transport up to 2 billion cubic feet per day of natural gas from Waha, Texas, to NextEra Energy Incorporated's (NYSE:NEE) (Juno Beach, Florida) hub in Agua Dulce, Texas.
Components of the Whistler project include the estimated $725 million mainline and a $60 million lateral, which run 450 miles and 27 miles, respectively. The lateral will supply Whistler via multiple upstream connections in both the Midland and Delaware basins, including direct connections to Targa plants, according to the company. For more information, see Industrial Info's project reports on the mainline and lateral.
Other pipeline projects crisscrossing the Lone Star State include the much-anticipated Grand Prix Pipeline, which recently began sending 150,000 to 170,000 barrels per day of natural gas liquids (NGL) from the Permian to Mont Belvieu. "Our expectation is for volumes to increase to approximately 200,000 barrels per day in September, then further increase over the balance of 2019 as short-term, third-party transportation arrangements continue to roll off and additional gathering and processing facilities come online," Targa said in the press release.
These additional phases include a $120 million extension in northern Texas that will connect four processing plants with Grand Prix's south leg, running about 110 miles, and the $80 million north leg that will connect the mainline with Decatur, Texas, running about 80 miles. For more information, see Industrial Info's project reports on the northern Texas extension and the north leg.
"Our Grand Prix NGL pipeline recently commenced deliveries into Mont Belvieu, realizing the long-run strategic goal of integrating our leading gathering and processing position with our premier NGL logistics, fractionation and export platform," said Joe Bob Perkins, the chief executive officer of Targa, in a quarterly press release. "Grand Prix, combined with our remaining system expansions underway, will drive increasing, largely fee-based, cash flow growth for Targa."
Industrial Info Resources (IIR), with global headquarters in Sugar Land, Texas, six offices in North America and 12 international offices, is the leading provider of global market intelligence specializing in the industrial process, heavy manufacturing and energy markets. Industrial Info's quality-assurance philosophy, the Living Forward Reporting Principle, provides up-to-the-minute intelligence on what's happening now, while constantly keeping track of future opportunities. Follow IIR on: Facebook - Twitter - LinkedIn. For more information on our coverage, send inquiries to info@industrialinfo.com or visit us online at http://www.industrialinfo.com/.
