Targa's Permian natural gas volumes hit a record 7.2 Bcf/d in Q2, up 450 MMcf/d from Q1, "almost two plants worth of gas in one quarter," as CEO Matt Meloy put it, and that came despite 200–400 MMcf/d shut in on any given day because of week Waha natural gas prices. With Hugh Brinson Phase 1 and the Gulf Coast Express expansion now moving gas out of the basin, management mentioned most of those shut-ins returned in July.
Regarding their NGL business, the company reported record NGL pipeline throughput of 1.1 MMb/d, record fractionation volumes of 1.2 MMb/d, and record LPG exports of 14.8 million barrels per month (~490 Mb/d) at Galena Park. Management attributed export growth to the Middle East conflict pushing buyers toward U.S. barrels and noted more butane heavy cargoes.
Speedway, a roughly 500-mile, 500 Mb/d NGL pipeline from the Permian to Mont Belvieu, expandable to 1 MMb/d by adding additional pump stations is on-schedule to start up in Q3 2027 alongside the Galena Park expansion that will lift LPG export capacity to 19 million barrels per month (~625 Mb/d). The 275 MMcf/d East Driver processing plant entered service in Q2, earlier than expected. Frac train 11 (150 Mb/d) and the 500 Mb/d Delaware Express Y-grade pipeline, which takes processing plant outlet volumes from the TX Delaware across the Permian to the company's larger Y-grade takeaway system, also entered service in Q2. When asked about how long processing plants take to construct from sanctioning to start-up, President of Gathering and Processing Patrick McDonie mentioned "Lead times definitely have gotten extended...18 to 24 months is the kind of timeframe we look at." He went on to mention, "lead times on compression, lead times on certain components of plants certainly are extended, but it hasn't affected our ability to perform in any way." Other project details including gas processing plants, fractionators and natural gas pipelines are tabulated below, with currently in-service projects denoted with a (1) superscript.
Source: TRGP
