Targa Resources Corp. reported that it will sell 25% joint venture interest in its previously announced Grand Prix natural gas liquids pipeline to funds managed by Blackstone Energy Partners. Once the deal is completed, Grand Prix will be a 300,000-b/d common-carrier NGL pipeline from the Permian basin to Mont Belvieu, Tex., with expansion capability to 550,000 b/d.
In a concurrent deal, Targa and EagleClaw Midstream Ventures LLC, a Blackstone portfolio company, signed a long-term raw product purchase agreement for transportation and fractionation services whereby EagleClaw will dedicate and commit NGLs associated with its gas volumes produced or processed in the Delaware basin.
Separately, Targa also reported that it has signed a letter of intent along with Kinder Morgan Texas Pipeline LLC and DCP Midstream LP with respect to the joint development of the proposed Gulf Coast Express Pipeline, which would provide an outlet for increased gas production from the Permian basin to the Texas Gulf Coast.
As part of the agreements, Targa would own 25% equity interest in GCX and would commit volumes to the proposed project, including volumes provided by Pioneer Natural Resources Co.
GCX is expected to have capacity of 1.92 bcfd and would include a lateral into the Midland basin consisting of 50 miles of 36-in. pipeline and associated compression.
The expected in-service date of the pipeline continues to be scheduled for second-half 2019, pending the timely completion of definitive agreements with shippers and a final investment decision by the three parties.