The Grand Prix pipeline will transport gas from the Permian Basin, in Western Texas and its North Texas system to its fractionation and storage location in Mont Belvieu, outside Houston.
The proposed pipeline will have a capacity of approximately 300,000 b/d, with the potential for expansion to 550,000.
“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 Targa CEO Joe Bob Perkins.
“Our ability to offer a highly competitive, fully integrated model, from gathering and processing through transportation and fractionation, to current and future customers should drive continued growth for Targa in both our gathering and processing (G&P) and downstream segments.
“One of our key strategic objectives has been to identify attractive opportunities to leverage our growing G&P volumes from one of the best hydrocarbon basins in the world into additional downstream opportunities for Targa and our customers, and Grand Prix is an excellent result of those efforts,” he said.
Located in the west of Texas, but crossing the border into New Mexico, the Permian Basin stretches across an area approximately 400 km wide and 480 km long and is rich in oil and gas reserves.
Targa said it expected to spend US$250 million on the project in 2017, with the pipeline becoming operational in early-2019.
