With Targa’s new NGL Frac 10 announcement last week during its quarterly earnings conference call, midstream companies are expecting to add over 1 million barrels per day of fractionation capacity on the Texas Gulf Coast between 4Q22-1Q25. As shown on the chart below, a total of eight NGL fractionation projects, including the restart of the Gulf Coast Fractionator (GCF), have been announced which will increase NGL fractionation capacity on the Gulf Coast by 1,075 Mb/d. Phillips 66 (P66) kicked off the frac party in 4Q22 with the start-up of its 150 Mb/d Sweeny 4 fractionator. ONEOK reportedly joined the fray in April with the commissioning of its new 125 Mb/d MB-5 frac. Enterprise and Energy Transfer will really get things rolling in 3Q23 with each company bringing up a 150 Mb/d frac. But it is not all new builds, with the old timer of the bunch, the 135 Mb/d GCF expected to fire back up in 1Q24. GCF, which is a joint venture between Targa, P66 and EnLink, has been shut down since January 2021 and will be operated by Targa. Targa will keep the party going in short order by adding the 120 Mb/d Frac 9 in 2Q24. Finally, the party will wrap-up with the start-up of ONEOK’s 125 Mb/d MB-6 and Targa’s 120 Mb/d Frac 10 in 1Q25. Now that’s a lot of new frac capacity!
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Don't Stop - Targa Resources, Phillips 66 Detail Plans for Expanding Permian-to-Gulf Infrastructure
The handful of midstream companies that provide a full range of “wellhead-to-water” services between the Permian and the Gulf Coast are in growth mode, advancing a long list of gas processing plants, takeaway pipelines, fractionators and export terminal expansions. Last time we looked at what Enterprise Products Partners and Energy Transfer are up to. In today’s RBN blog, we shift our spotlight to what Targa Resources and Phillips 66 are planning, with Targa building a slew of projects and P66 growing primarily through organic opportunities that have arisen following recent bolt-on M&A.
Magical Mystery Tour, Part 4 - Mont Belvieu Fractionation Capacity and NGL Assets: ONEOK & GCF
For a while, the 840 Mb/d of NGL fractionation capacity that was added in Mont Belvieu, TX, between 2013 and 2016 — combined with the 1.2 MMb/d of capacity already in place before that four-year fractionator construction boom — was more than enough. But the run-up in NGL production in the Permian, SCOOP/STACK and other liquids-rich plays in 2017 and the first half of 2018 is quickly increasing the demand for fractionation services and challenging Mont Belvieu’s ability to keep up. Now, another 465 Mb/d of fractionator capacity is under development. Will they be finished soon enough? Will still more be needed? Today, we continue our review of fractionators, NGL and purity-product storage and other key infrastructure, this time with a look at ONEOK and Gulf Coast Fractionators’ assets.
Piece by Piece - Phillips 66 Expands Permian Natgas/NGL Network With Pinnacle Midstream Deal
Rome wasn’t built in a day and neither were the large, wellhead-to-market natural gas and NGL networks that Phillips 66 and a handful of other midstream empires have assembled — many of them targeting the all-important Permian. Now, P66 has reached an agreement to acquire Pinnacle Midstream, whose associated gas gathering system and gas processing complex in the heart of the Midland Basin nicely complement a host of other gathering and processing assets P66 controls through its majority stake in DCP Midstream. In today’s RBN blog, we’ll discuss P66’s planned purchase of Pinnacle Midstream and what it means for the Permian piece of the acquiring company’s broader natgas/NGL system.
