Williams and Targa Reveal $600 Million NGL Pipeline Projects in U.S.
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Williams and Targa Resources revealed their plans to develop new natural gas liquids pipeline projects (NGL pipeline projects) in the U.S. with an investment of around $600 million.
The NGL pipeline projects to be developed are the 302.5km long Bluestem Pipeline and a 177km extension of the Grand Prix NGL Pipeline.
The new pipeline projects will link the NGL markets in Conway, Kansas, and Mont Belvieu in Texas.
Williams will construct the Bluestem Pipeline from its fractionator in Conway, Kansas, and the southern terminus of Overland Pass Pipeline to an interconnect with the Grand Prix NGL Pipeline in Kingfisher County, Oklahoma, which is owned by Targa.
Under the project, Williams also intends to expand the DJ Lateral of the Overland Pass Pipeline and undertake improvements at its Conway NGL Storage facility. Overall, the company expects to invest $350-$400m in the NGL logistics projects.
Targa, on its part, will build the Grand Prix extension from southern Oklahoma into the STACK region of Central Oklahoma where it will be connected to the Bluestem Pipeline.
The Grand Prix extension project’s initial capacity will be around 120,000 barrels per day and is estimated to cost nearly $200m.
“Expanding our NGL pipeline business to interconnect with Targa’s strategically-positioned Grand Prix Pipeline will provide Williams and our customers with access to Mont Belvieu while opening up additional markets for Conway,” said Williams President and CEO Alan Armstrong.
Targa and Williams are aiming to place the new NGL pipelines into service in the first quarter of 2021.
The companies have also announced new NGL agreements, under which Williams has committed to significant volumes to Targa which the latter will transport on the Grand Prix pipeline and fractionate at its Mont Belvieu facilities.
Williams will have an initial option to acquire a stake of 20 percent in one of the recently announced Targa’s new fractionation trains seven or eight in Mont Belvieu.
“The further expansion of our Grand Prix NGL Pipeline into the STACK is an attractive extension of a highly strategic asset for Targa and will direct significant incremental NGLs over the long-term from Williams and other third parties to Grand Prix and to our downstream assets in Mont Belvieu and Galena Park,” said Targa CEO Joe Bob Perkins.
Source: Compelo
To stop by Williams’ website, CLICK HERE
To stop by Targa’s website, CLICK HERE
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