Targa Resources Corp. today announced it intends to construct the Grand Prix Pipeline, a new common carrier natural gas liquids pipeline that will transport volumes from the Permian Basin and Targa’s North Texas system to the company’s NGL market hub at Mont Belvieu, Texas.
The Grand Prix Pipeline will be supported by Targa’s volumes and other third party customer commitments, and is expected to be operational in the second quarter of 2019. The capacity of the pipeline from the Permian Basin will be approximately 300,000 barrels per day, expandable to 550,000 barrels per day.
“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, Targa Resources Chief Executive Officer. “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.”
The total growth capital for Grand Prix is projected to be approximately $1.3 billion, with approximately $250 million of spending expected in 2017.