The Permian is in the midst of an NGL infrastructure boom as midstream companies are investing to keep up with the strong production growth projected over the next several years — but until these new projects are up and running, NGL pipeline capacity to the Gulf Coast is only going to get tighter. In today’s RBN blog, we look at five pipeline projects that are under construction or in the planning process that would significantly boost NGL takeaway capacity out of the Permian.
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, among other things, take mixed NGLs (aka Y-grade) from gas processing plants to the NGL storage and fractionation hub in Mont Belvieu. We started our review of the few large midstream companies that own and operate their own NGL networks, beginning with Energy Transfer in Part 1 and Part 2 of this series.
We then shifted our focus to Targa Resources, which, in addition to being a major gas gatherer and processor in the Permian and a number of other production areas, owns the Grand Prix NGL pipeline system and is one of the biggest players in Mont Belvieu. As we noted in Part 3, Targa also owns and operates a huge LPG export terminal along the Houston Ship Channel at Galena Park. In Part 4, we turned our attention to NGL giant Enterprise Product Partners, which owns and operates an extensive NGL network stretching from Appalachia to the Permian to the Rockies.
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