Williams, Targa Ink Agreements To Link Conway, Belvieu Markets
Williams will build a 188-mile NGL line, the Bluestem Pipeline, from its fractionator in Conway and the southern terminus of the Overland Pass Pipeline
to an interconnect with Targa’s Grand Prix Pipeline in Kingfisher County, Okla. In turn, Targa will construct a 110-mile extension of Grand Prix from southern Oklahoma into the Sooner Trend oil field, the Anadarko Basin, and Canadian and Kingfisher counties in the STACK region of central Oklahoma where it will connect with Williams’ new Bluestem Pipeline.
“We are pleased to partner with Targa on this NGL infrastructure solution,” said Alan Armstrong, president and CEO of Williams Cos. “Expanding our NGL pipeline business to interconnect with Targa’s strategically positioned Grand Prix Pipeline will provide Williams and our customers with access to Mont Belvieu while opening up additional markets for Conway. Additionally, this delivers a long-term infrastructure solution for NGLs from our Opal, Echo Springs, Willow Creek, and Rocky Mountain Midstream processing complexes while also creating a platform for growth—offering us the opportunity to gain incremental downstream revenues as we expand our G&P [gathering and processing] business.”
In connection with the project, Williams has committed significant NGL volumes to Targa, which it will transport on Grand Prix and fractionate at its Mont Belvieu facilities. Williams will also have an initial option to purchase a 20% equity interest in one of Targa’s new fractionation trains, 7 or 8, in Mont Belvieu.
“We are very pleased to be working with Williams to enhance market access for NGLs,” said Joe Bob Perkins, CEO of Targa Resources. “The further expansion of our Grand Prix NGL pipeline into the STACK is an attractive extension of a highly strategic asset for Targa and will direct significant incremental NGLs over the long term from Williams and other third parties to Grand Prix and to our downstream assets in Mont Belvieu and Galena Park.”
Targa’s Grand Prix extension will have an initial capacity of about 120,000 bbld and is expected to cost approximately $200 million. Targa and Williams are targeting an in-service date of first quarter 2021 for both the Grand Prix extension and the new Bluestem Pipeline. As part of the project, Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL storage facility. Williams expects its investment in the NGL logistics projects to be $350 million to $400 million.
(SOURCE: The Weekly Propane Newsletter, March 4, 2019)
OUR DIGITAL PARTNERS