Pipeline operator Targa Resources said on Monday it would build three natural gas processing plants in the Permian Delaware Basin and a new pipeline, expanding its footprint as production rises in the U.S. shale region.
Midstream companies in the U.S. such as Targa are benefiting from strong oil and gas production in the Permian Basin, rising natgas demand driven by liquefied natural gas exports and soaring power generation tied to AI operations, cryptocurrency mining and data centers.
Here are more details:
* Targa’s new natural gas processing plants — Wrangler, Ranger and Ranger II — will add a combined processing capacity of 825 million cubic feet per day (MMcf/d) and are expected to enter service in the first half of 2028, the company said.
* The company said it is evaluating up to five more processing plants in the Permian Delaware Basin over the longer term as production increases.
* It is also considering adding another fractionation train at its Mont Belvieu complex in Texas.
* Targa also announced a new 70-mile natural gas pipeline as part of its Bull Run residue system in the Permian Delaware.
* The pipeline will transport natural gas from the new processing plants to the Waha hub and is expected to begin operations in the first half of 2028.
* Separately, Targa said it had signed new 20-year, fee-based agreements with ExxonMobil’s units for natural gas gathering, processing and downstream services in the Permian Basin.
(Reporting by Katha Kalia in Bengaluru; Editing by Diti Pujara)