Targa Resources Corp. announced new organic growth projects to support continuing NGL and natural gas production growth in the Permian Basin and to meet the infrastructure needs of its customers.
With ~1 million barrels per day of natural gas liquids (NGLs) currently being transported on Targa’s existing NGL transportation system, including volumes from the Pembrook II plant that came online during the third quarter of 2025 in the Permian Midland and is currently running at high utilization, Targa is moving forward with plans to construct the Speedway NGL Pipeline (Speedway). Speedway will transport NGLs from Targa’s existing assets and future plant additions, including a new processing plant announced today, in the Permian Basin to Targa’s fractionation and storage complex in Mont Belvieu, Texas. The project consists of ~500 miles of 30-inch diameter pipeline and associated infrastructure with an initial capacity of ~500 thousand barrels per day (MBbl/d), expandable to 1,000 MBbl/d. Speedway is expected to be in service in the third quarter of 2027 at an estimated cost of approximately $1.6 billion.
To accommodate future growth on Targa’s Permian Delaware system, the company is also moving forward with the construction of its next 275 million cubic feet per day (MMcf/d) gas processing plant, the Yeti plant, which is expected to be in service in the third quarter of 2027. Including the Yeti plant, Targa is constructing five gas processing plants in the Permian that will be online over the next two years, with an aggregate inlet capacity of 1.4 billion cubic feet per day (Bcf/d) and estimated NGL production of ~175 to 200 MBbl/d.
Targa also announced a new 35-mile natural gas pipeline that will enhance connectivity across several Targa plants in the Permian Midland and a 55-mile conversion of an existing Targa pipeline into natural gas service (together "Buffalo Run") that will connect Targa's Midland and Delaware intra-basin natural gas systems. The combination of Buffalo Run and Targa's previously announced Bull Run Extension will enhance connectivity to multiple markets, including the Waha hub, and will add meaningful natural gas flow assurance and reliability for Targa's customers. Including the pipeline conversion, Buffalo Run is expected to be completed in stages and fully completed in early 2028.
With the announcement of Speedway, Buffalo Run and the Yeti plant, Targa now estimates total net growth capital expenditures for 2025 to be around $3.3 billion, including already ordered pipe for Speedway and long-lead items already ordered for the Yeti plant.
“We have benefited from meaningful volume growth across our Permian Basin assets this year, and our outlook for volume growth in 2026 continues to remain robust. Given the NGLs currently flowing through our system and numerous plant additions in progress, we will have significantly more volumes to move on Speedway when it comes into service. The strength of our outlook over the near, medium and long term is supported by multiple factors, including our continued volume ramp during the third quarter, the bottom-up forecast we see from our customer base, and the continued industry trend of rising gas-to-oil ratios in the basin. Speedway is critical to the continued execution of our core integrated wellhead to water strategy, will generate attractive and growing fee-based cash flows, and will provide Targa with significant operating leverage once in service,” said Matt Meloy, Targa’s Chief Executive Officer.
