Grand Prix NGL Pipeline started up from Permian to Houston

The $1.4 billion Grand Prix natural gas liquids pipeline project that stretches from Permian Basin to the Houston area has been started up, Targa Resources said on Thursday. The pipeline can currently move 300,000 barrels per day, which can be expanded to 500,000 barrels daily.

"Our Grand Prix NGL pipeline recently commenced deliveries into Mont Belvieu, realizing the long-run strategic goal of integrating our leading gathering and processing position with our premier NGL logistics, fractionation and export platform," said Targa Chief Executive Joe Bob Perkins.

The pipeline system is also getting expanded to stretch into Oklahoma and that effort is under construction. The company also plans to expand the western portion of the Grand Prix pipeline into New Mexico.

Natural gas liquids products like propane, butane and ethane will flow through the pipeline from Permian Basin and will be separated into their individual components at processing facilities, called fractionators, in Mont Belvieu.


Williams and Targa to Construct Nearly 300 Mile of NGL Pipe in New $600 Million Investment

Williams and Targa Resources Corp. have announced that they will be working on a new NGL pipeline. The agreement will have the project link the Conway, Kansas, and Mont Belviue, Texas NGL markets.

The 188 mile Bluestem Pipeline will be built by Williams from its fractionator in Conway, Kansas and the terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Oklahoma.

Targa will be responsible for construction a 110 mile extension of Grand Prix which will connect southern Oklahoma and the Sooner Trend oilfield, the Anadarko basin, as well as Canadian and Kingfisher counties in Central Oklahoma where it will finally connect with Williams’ new Bluestem Pipeline.

“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 Alan Armstrong, President and Chief Executive Officer of Williams.

 “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 Joe Bob Perkins, Chief Executive Officer of Targa.

An expected investment of $350 million to $400 million will be made by Williams in these NGL logistics projects, and an expected cost of $200 million will be made by Targa’s Grand Prix extension, which will have an initial capacity of approximately 120,000 bpd.

For both the Grand Prix extension and the new Bluestem Pipeline, the target in-service date set is first quarter of 2021, according to Targa and Williams.

Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL Storage facility, as part of this project.

World Pipelines

Targa Resources to Build 635-Mile NGL Pipeline in Texas

Energy company Targa Resources plans to build a 635-mile natural gas liquids pipeline in Texas from the Permian Basin to Mont Belvieu.

The pipeline, called "Grand Prix," will transport natural gas from the Permian Basin and from Targa's North Texas system to the company's fractionation and storage complex in the Mont Belvieu NGL market hub.

The pipeline will mostly run through gateways where other pipelines already exist. Some additional land acquisition is possible, but that information will not be known until surveying is complete.

Grand Prix will have a capacity of about 300,000 barrels per day and will be expandable up to 550,000 barrels per day.

The pipeline is expected to be in service by the second quarter of 2019.

"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 CEO of Targa Joe Bob Perkins.

Houston Chronicle

Targa Resources Teams Up With Kinder Morgan on 430-Mile NatGas Pipeline

Targa Resources and Kinder Morgan are working together to build the 430-mile Gulf Coast Express natural gas pipeline from the Permian Basin to Corpus Christi.

The project is being led by Kinder Morgan, and Targa Resources is buying a 25 percent stake while also selling 25 percent of its proposed Grand Prix natural gas liquids pipeline project to equity firm Blackstone Energy Partners.

Kinder Morgan will own 50 percent of the Gulf Coast Express Pipeline, and DCP Midstream has the remaining 25 percent.

The project is expected to be complete by late 2019.

DCP Midstream was founded by Phillips 66 and Spectra Energy. Enbridge acquired Spectra Energy this year, so it now also owns DCP Midstream with Phillips 66.

Houston Chronicle