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.


$1.6 Billion Closing Deal by Targa Resources to Sell Stakes in Bakken Assets

Targa Resources confirmed on Thursday that the company has closed a $1.6 billion deal to sell a minority stake in its Bakken Shale assets in North Dakota. The deal was to sell 45 percent of its subsidiary Targa Badlands LLC to funds managed by New York-based GSO Capital Partners and Blackstone Tactical Opportunities.

 Targa Badlands owns and operates 480 miles of crude oil gathering pipelines, 260 miles of natural gas gathering pipelines, crude oil storage terminals and a natural gas processing plant in the Bakken which is spread throughout western North Dakota.

 With the deal now closed, Targa is planning to complete construction of another natural gas processing plant in the Bakken. The company plans to use proceeds from the $1.6 billion deal with GSO and Blackstone to pay down debt and fund part of its 2019 capital expenditure program.


Targa Resource's New Pilot Project Uses Bugs To Clean Soil After Spills

Targa Resources has a pilot project in McKenzie County that will use bioremediation (known as land farming) to remove spilled oil and allow the soil to be reused. The alternative method will introduce bugs to contaminated soil.

“When you spill hydrocarbon, there are naturally occurring microbes – bugs – that immediately start to eat it,” said David McQuade, senior environmental director for Targa. “I’m adding a bunch more bugs that want to eat it at a faster rate.”

After completing a successful land farming project on the Fort Berthold Reservation last year, Targa got permission from the Tribal Business Council to do bioremediation at the company’s facility in New Town.

Microorganisms added during the Bioremediation process begin to degrade contaminants in the soil. Crew workers periodically make sure the microbes have enough oxygen by working the soil after it is spread about 8 inches thick in order to accelerate the process.

The bugs digest the hydrocarbon to convert them into carbon dioxide, water, and organic matter.

“Naturally, the soil at end of process becomes a very, very fertile material, sometimes more fertile than it was before the spill,” McQuade said.

He added that the process only works for hydrocarbon spills and not brine.

Since microorganisms hibernate in the winter, the project is expected to continue into next year.

McQuade said he’s meeting with policy makers and leaders of the Northwest Landowners Association regarding possible solutions to speed up the permitting process.

Bismarck Tribune

Targa Resources and Partners to Compete with Kinder Morgan, Plans for 600-Mile Permian Pipeline

Targa Resources, a Houston Pipeline firm, said it would be teaming up with multiple partners to build a 600-mile natural gas pipeline system from West Texas’s Permian Basin to Corpus Christi and Houston regions.

The partnership would put Targa in direct competition with Kinder Morgan and other companies’ massive gas pipelines in the race to build crude oil pipelines and serve the record levels of production from the Permian. Kinder Morgan recently announced plans for a 430-mile Permian Highway Pipeline project to transport natural gas to Houston and Corpus hubs.

Targa said on Friday that its aim is to build the Whistler Pipeline project with Florida’s NextEra Energy, Ohio’s MPLX and some private equity investors as partners.

The project would transport 2 billion cubic feet of gas per day through 42 inch pipelines stretching 450-miles from Waha, Texas to just west of Corpus Christi. A 30-inch pipeline would transport the shipment an additional 170-miles to Wharton County.

Houston Chronicle


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

Cayenne NGL Pipeline to Commence Full Operation

American Midstream Partners announced Wednesday that its Cayenne Pipeline joint venture with Targa Resources is now complete and that deliveries on the line can begin.

The Cayenne Pipeline will initially have a capacity of 40,000 barrels per day of Y-grade NGL and will be able to expand to 50,000 barrels per day.

The Cayenne Pipeline will begin at the Targa-operated Venice processing plant and end at Enterprise Products Partners' pipeline in Toca, Louisiana for delivery to Enterprise Products' Norco Fractionator.

American Midstream contributed an underutilized natural gas pipeline and converted it into high value, natural gas liquids service as part of the joint venture.

Both American Midstream and Targa Resources have 50 percent economic interest and 50 percent voting rights with Targa serving as the operator of the venture.

BOE Report

Kinder Morgan, DCP Midstream, Targa Resources Move Foward with GCX NatGas Pipeline

Kinder Morgan, DCP Midstream, and Targa Resources today announced a final investment decision to move forward with the $1.7 billion Gulf Coast Express Pipeline Project (GCX Project) that will transport up to 1.92 billion cubic feet daily of natural gas.

The announcement comes after the companies solidified joint venture agreements and secured enough transportation agreements with shippers.

The mainline portion of the GXP Project will run for 447 miles from the Waha Hub in the Permian Basin to Agua Dulce, Texas. An additional 50-mile Midland Lateral portion and associated compression will connect with the GCX Project.

Construction on the project is expected to begin in the first quarter of 2018, and the companies hope to begin service on the pipeline in October 2019. Kinder Morgan will own 50 percent of the project while DCP Midstream and Targa Resources each own 25 percent.

Business Wire

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


American Midstream Announces Cayenne Pipeline Joint Venture

American Midstream announced Tuesday that it has entered into a joint venture agreement with Targa Midstream Services to create Cayenne Pipeline, LLC.

The Cayenne Pipeline will transport Y-grade NGLs from a Targa-operating gas processing plant to Enterprise Products Partners' pipeline in Toca, Louisiana, for delivery to Enterprise Products' Norco Fractionator.

American Midstream is contributing an underutilized natural gas pipeline that will convert into high value, natural gas liquids service. The pipeline will have initial capacity of over 40,000 barrels per day with ability to throughput more than 50,000 barrels per day.

The project is expected to be fully operational by the end of this year.

Both American Midstream and Targa will have 50 percent economic interest and 50 percent voting rights with Targa serving as the operator of the venture.

American Midstream

Houston-Based Pipeline Company to Build $1.3 Billion NGL Pipeline in Permian Basin

Targa Resources announced Thursday that it plans to build a $1.3 billion natural gas liquids pipeline from the Permian Basin to a company-owned plant in Mont Belvieu, Texas.

Houston-based pipeline company Targa will sell space in the line, called Grand Prix, to other companies. The line will also connect to Targa's North Texas pipeline system.

The Grand Prix pipeline will have the capability to transport as much as 550,000 barrels per day.

Targa Resources wrote in its announcement that it currently has a total of 1.7 billion cubic feet per day of current processing capability, making it one of the largest gatherers and processors of natural gas in the Permian Basin.

Fuel Fix