Williams Cos. Inc. and Targa Resources Corp. have entered into agreements to expand key systems that will link the Conway, Kan., and Mont Belvieu, Tex., NGL markets.
As part of the agreements, Williams will build the 188-mile Bluestem NGL pipeline from its Conway fractionator and the southern terminus of the Overland Pass Pipeline (OPPL) to an interconnect with Targa’s Grand Prix NGL pipeline in Kingfisher County, Okla., while Targa will build a 110-mile extension of Grand Prix from southern Oklahoma into the STACK region of central Oklahoma where it will connect with Williams’ new Bluestem pipeline, the companies said.
Williams also has committed an unidentified volume of NGLs to Targa for transport on Grand Prix and fractionation at Targa’s Mont Belvieu operations. Per the agreement, Williams will have an initial option to purchase a 20% equity interest in one of Targa’s planned new fractionation Trains 7 or 8 in Mont Belvieu.
At an estimated cost of about $200 million, Targa’s Grand Prix extension will have an initial capacity of about 120,000 b/d (OGJ Online, Mar. 28, 2018).
Targa and Williams are targeting an in-service date of first-quarter 2021 for both the Grand Prix extension and the new Bluestem pipeline, respectively. As part of the project, Williams also plans to expand the DJ Lateral of the OPPL and make improvements at its Conway NGL storage site (OGJ Online, July 30, 2018).
Williams said it expects to invest $350-400 million in the NGL logistics projects.
The proposed agreements will enable both Williams and Targa to capture synergies from growing NGL volumes currently produced from Wamsutter and DJ basin operations, the companies said.
