Targa Resources will build a 500-mile pipeline to transport natural gas liquids from its plants in the Permian Basin to its fractionation and storage complex in Mont Belvieu, Texas, it said on Tuesday.
The Speedway NGL Pipeline is expected to cost about $1.6 billion and will have an initial capacity of about 500 thousand barrels per day.
The 30-inch diameter pipeline is expected to be in-service in the third quarter of 2027.
The pipeline operator will also build a natural gas processing plant, called the Yeti, in the Permian Delaware basin, Texas, with a capacity of 275 million cubic feet per day.
Including the Yeti, Targa is constructing five gas processing plants in the Permian that will be online in two years.
The company also said it will build a 35-mile natural gas pipeline to link several of its processing plants in the Permian Midland, and convert a 55-mile existing pipeline to natural gas service, forming the Buffalo Run system that connects its Midland and Delaware intra-basin networks.
Targa expects total net growth capital expenditures for 2025 to be around $3.3 billion.
It supplies natural gas and NGLs to key markets through its network of gathering and processing assets across the Permian Basin, Eagle Ford Shale, Bakken Shale and other major U.S. oil and gas regions.
The company transports, processes and fractionates NGLs into component products like ethane, propane and butane.
(Reporting by Katha Kalia in Bengaluru; Editing by Sahal Muhammed)