Targa Resources Partners LP has finalized an exclusive non-binding memorandum of understanding with TexStar Midstream Services, LP and TEAK Midstream, LLC for development of a new y-grade natural gas liquids (NGL) pipeline to transport NGLs from processing facilities in the Eagle Ford shale to Mont Belvieu and a new fractionation train at the Targa Resources Partners-operated Cedar Bayou fractionation facility.
Upon consummation of the transaction, Targa Resources Partners would expect to become an owner in the new pipeline that will be designed to accommodate a future extension into the Permian Basin area of West Texas to provide y-grade transportation services. Plans also call for an upgrade at CBF’s fractional facility by late 2012 and the construction of a cryogenic natural gas processing plants by TEAK and TexStar.
The two plants expect to produce 50,000 bpd of y-grade NGLs. Combined, the two processing plants and the gathering systems behind them would serve 12 counties in the liquids-rich Eagle Ford shale.