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... Ready for It?, Part 3 - Permian Production Boom Drives Build-out of Targa's NGL Network

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 need to be transported, fractionated and shipped to end-users. Targa Resources, with its full slate of NGL-related assets — gathering systems, processing plants, NGL pipelines, fractionators and an LPG terminal — is a big winner in all this. In today’s RBN blog, we continue our series on the U.S.’s robust and growing NGL networks with a look at Targa’s array of assets in the Permian and other production areas.

In Part 1 of this series, we said that the rise in U.S. NGL production in the early years of the Shale Era was accompanied by a massive build-out of the infrastructure required to take NGLs from the wellhead to the consumers of ethane, propane and other NGL “purity products.” While we have written countless blogs about the bits and pieces of infrastructure development, what we haven’t done, at least until now, is discuss in holistic terms the NGL networks that a handful of large midstream companies have come to own and operate. We started our review with Energy Transfer, which owns NGL networks in Texas and the Northeast.

Today, we turn our attention to Targa Resources, which, in addition to being a major gas gatherer and processor in West Texas and southeastern New Mexico, owns gathering and processing assets in South Texas, North Texas, Oklahoma, coastal/offshore Louisiana and western North Dakota. Targa also owns the massive Grand Prix NGL pipeline system stretching 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 fractionation hub east of Houston, and owns and operates a huge LPG export terminal along the Houston Ship Channel at Galena Park.

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