Crude oil production in the Permian continues to grow, gas-to-oil ratios in the basin are on the rise, and a slew of new gas processing plants are coming online, extracting more and more NGLs that must be transported, fractionated and send to end users. Targa Resources, with its full roster of NGL-related assets—gathering systems, processing plants, NGL pipelines, fractionators and an LPG terminal—is a big winner in all of this. In today’s RBN blog, we continue our series on robust and growing US NGL networks with a look at Targa’s range of assets in the Permian and other producing areas.
In Part 1 in this series, we said that the surge in U.S. NGL production in the early years of the Shale era was accompanied by a massive build-out of the infrastructure needed to get NGLs from the wellhead to the consumers of ethane, propane and other NGL “. purity products”. While we’ve written countless blogs about the pieces of infrastructure development, what we haven’t done, at least until now, is discuss NGL in holistic terms. Nets that a handful of large midstream companies have come to own and operate. We started our review with Energy Transfer, owner of NGL Networks Texas i the northeast.
Today we focus on Targa Resources, which, in addition to being a major gas gatherer and processor in West Texas and Southeast New Mexico, owns gathering and processing assets in South Texas, North Texas, Oklahoma, coastal/offshore Louisiana and the west. North Dakota Targa also owns the large Grand Prix NGL pipeline system that extends from the Permian and Anadarko basins to the Gulf Coast and is developing the Daytona NGL pipeline as an expansion to Grand Prix. Finally, the company is one of the biggest players in Mont Belvieu, the fracking hub east of Houston, and owns and operates a huge LPG export terminal along the Houston Ship Channel in Galena Park.
