Targa Resources Partners and DCP Midstream have entered into long-term agreements to expand the Cedar Bayou Fractionator at Mont Belvieu in Texas, US.
The capacity will be increased by 100,000 barrels a day and DCP will build a 700 mile pipeline system to transport Y-grade natural gas liquids from natural gas processing plants in the Permian Basin and Eagle Ford Shale to CBF and the Mont Belvieu NGL hub.
The joint venture will be part of the partnership for the existing Gulf Coast NGL storage, terminal and delivery facilities, which include a network of connections to petrochemical and industrial customers.
The construction is expected to be completed by the first quarter of 2013 and the total cost of the expansion is estimated at around $360 million (€255 million).
‘The CBF expansion and new NGL pipeline enhance the sources and diversity of supply for our petrochemical and industrial customers. This is an exciting, fee-based, organic growth investment for the partnership,’ says Rene Joyce, CEO of the partnership’s general partner and of Targa Resources.