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Targa to Build NGL Pipeline from Permian Basin to Mont Belvieu, TX

Targa Resources Corp., May 26, 2017

Targa Resources Corp. ("Targa" or the "Company") recently announced plans to construct a new common carrier natural gas liquids ("NGL") pipeline from the Permian Basin. Targa's NGL pipeline ("Grand Prix") will transport volumes from the Permian Basin, and also from Targa's North Texas system, to Targa's fractionation and storage complex in the NGL market hub at Mont Belvieu, Texas. Grand Prix will be supported by Targa's volumes and other third party customer commitments, and is expected to be in service in the second quarter of 2019.  The capacity of the pipeline from the Permian Basin will be approximately 300 thousand barrels per day, expandable to 550 thousand barrels per day.

Targa is one of the largest gatherers and processors of natural gas in the prolific Permian Basin, with approximately 1.7 Bcf/d of current natural gas processing capacity and approximately 0.7 Bcf/d of processing capacity being added across both the Midland Basin and the Delaware Basin. Targa's current and future natural gas processing plants and third party connections are expected to generate significant NGL volumes for Grand Prix. Grand Prix is expected to be an attractive and reliable fee-based takeaway solution for NGLs to Mont Belvieu, and will connect to Targa's fractionation, storage and export assets further downstream.  

"We are excited to be moving forward with Grand Prix, which will enhance our ability to move our customers' volumes from the wellhead in the Permian Basin and North Texas to key petrochemical and export markets," said Joe Bob Perkins, Chief Executive Officer of the Company. "Our ability to offer a highly competitive, fully integrated model, from gathering and processing through transportation and fractionation, to current and future customers should drive continued growth for Targa in both our Gathering and Processing and Downstream segments. One of our key strategic objectives has been to identify attractive opportunities to leverage our growing G&P volumes from one of the best hydrocarbon basins in the world into additional downstream opportunities for Targa and our customers, and Grand Prix is an excellent result of those efforts.

Total growth capital for Grand Prix is expected to be approximately $1.3 billion, with approximately $250 million of spending in 2017. Total 2017 net growth capital spending from Targa's current list of announced projects is now approximately $1.2 billion.

 


About Targa Resources Corp.

Targa Resources Corp. is a leading provider of midstream services and is one of the largest independent midstream energy companies in North America. Targa owns, operates, acquires, and develops a diversified portfolio of complementary midstream energy assets. The Company is primarily engaged in the business of: gathering, compressing, treating, processing, and selling natural gas; storing, fractionating, treating, transporting, and selling NGLs and NGL products, including services to LPG exporters; gathering, storing, and terminaling crude oil; storing, terminaling, and selling refined petroleum products. For more information please go to www.targaresources.com


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