Targa signs deal to construct pipeline in Delaware Basin
Targa Resources Corp. signed an agreement for natural gas gathering and processing services in the Delaware Basin.
As part of the deal, Targa will construct approximately 220 miles of 12- to 24-inch-high pressure rich gas gathering pipelines across parts of the Delaware Basin. A new plant in the Delaware Basin is 250 million cubic feet per day cryogenic natural gas processing plant that is expected to begin operations in the fourth quarter of 2019. A second cryogenic natural gas processing plant in the region is expected to begin operations in the second quarter of 2020.
“We are very pleased to have entered into agreements to provide services across our integrated platform supported by a large acreage position held by a major Delaware Basin customer,” Joe Bob Perkins, chief executive officer at Targa, said. “This is a significant extension of our multi-plant, multi-system Delaware footprint, adding infrastructure through the core of the Delaware Basin.”
Targa also announced an extension of its new common carrier natural gas liquids pipeline, called Grand Prix, which is currently under construction in southern Oklahoma. Targa will provide transportation and fractionation services from Targa’s existing and future processing plants in the Arkoma area in its SouthOK system and from third party commitments.
“The expansion of our Grand Prix NGL Pipeline into Oklahoma is an attractive extension of a highly strategic asset for Targa, enhancing the capabilities we can offer our existing and potential customers in southern Oklahoma,” Perkins said. “The investments are aligned with our strategic objectives of leveraging existing Targa infrastructure to further strengthen our competitive position from gathering and processing through transportation, fractionation, and other related services to meet the infrastructure needs of our customers.”
The Grand Prix is expected to be completed and in service in the second quarter of 2019.
