Houston pipeline company Targa Resources Corp. plans to build a $1.3 billion natural gas liquids pipeline from West Texas’ Permian Basin to its plant in Mont Belvieu, east of Houston, the company said on Thursday.
Targa will sell space in the new line, which it has named Grand Prix, to other companies, and also connect it to Targa’s North Texas system. Grand Prix will be able to transport as much as 550,000 barrels per day.
The company called itself one of the largest gatherers and processors of natural gas in the Permian, with about 1.7 billion cubic feet per day of current processing capacity. It is adding capacity worth 700 million cubic feet per day across the Permian’s Midland and Delaware basins.
“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 CEO Joe Bob Perkins.