Targa, partners to develop Whistler Pipeline project

Aug. 3, 2018
Targa Resources, NextEra Energy Pipeline Holdings, WhiteWater Midstream, and MPLX plan to jointly develop the Whistler Pipeline project to provide an outlet for natural gas production from the Permian basin to markets along the Texas Gulf Coast.

Targa Resources Corp.; NextEra Energy Pipeline Holdings LLC, an indirect, wholly owned subsidiary of NextEra Energy Resources LLC; WhiteWater Midstream LLC, a portfolio company of Denham Capital Management and Ridgemont Energy Partners; and MPLX LP plan to jointly develop the Whistler Pipeline project to provide an outlet for natural gas production from the Permian basin to markets along the Texas Gulf Coast.

The proposed project is designed to transport 2 bcfd of gas through 450 miles of 42-in. pipeline from Waha, Tex., to NextEra’s Agua Dulce market hub, with an additional 170 miles of 30-in. pipe continuing from Agua Dulce and terminating in Wharton County.

Supply will be sourced from multiple upstream connections in the Midland and Delaware basins, including direct connections to Targa plants through a 27-mile, 30-in. pipeline lateral, as well as a direct connection to the 1.4 bcfd Agua Blanca Pipeline—a joint venture of WhiteWater, WPX Energy, MPLX, and Targa—which crosses through the Delaware basin, including portions of Culberson, Loving, Pecos, Reeves, Winkler, and Ward counties. The project would have access to the Nueces Header and markets at Agua Dulce, as well as along a northern extension through Corpus Christi to the Houston Ship Channel.

The project, to be constructed by NextEra Energy Pipeline Holdings, operated by Targa, and financed at the project level, would begin operation in fourth quarter 2020, subject to execution of definitive agreements and the receipt of necessary approvals.

Targa, NextEra, MPLX, and WhiteWater, and their producer customers would commit volumes exceeding 1.5 bcfd to the project. The project is in negotiations for additional firm transportation commitments. An open season is expected in the coming months.