Targa Resources has entered into a joint venture with Blackstone Energy Partners in the Grand Prix Pipeline and has signed a letter of intent to own a stake in the Gulf Coast Express Pipeline.
The company has executed agreements to sell a 25% JV interest in the Grand Prix natural gas liquids pipeline to funds managed by Blackstone Energy Partners.
Once complete, the pipeline will be a new 300,000 barrel per day common carrier NGL pipeline from the Permian Basin to Mont Belvieu, Texas.
Targa and EagleClaw Midstream Ventures have also executed a long-term raw product purchase agreement for transportation and fractionation services for the pipeline.
It is expected that the Grand Prix pipeline is due to be operational in the second quarter of 2019.
Additionally, Targa also announced it has executed a letter of intent, along with Kinder Morgan Texas Pipeline regarding the Gulf Coast Express Pipeline project. The project will provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast.
The participation of the three parties involved with the project is subject to negotiation and executive of definitive agreements.
As part of the agreements, Targa would own a 25% equity interest in it and would commit significant volumes to the proposed project.
The expected in-service date of the pipeline continues to be scheduled for the second half of 2019.
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