Targa Resources Corp. has executed agreements to sell its wholly-owned subsidiary that holds a 25% equity interest in the Gulf Coast Express pipeline (GCX) to an undisclosed buyer for $857 million.
Targa expects to receive full proceeds from the sale in second-quarter 2022 following a customary call right period in favor of the other members of GCX.
Kinder Morgan Texas Pipeline LLC (KMTP), DCP Midstream LP, and an affiliate of Targa Resources Corp. built the 2-bcfd Gulf Coast Express Pipeline project, the mainline of which consists of roughly 82 miles of 36-in. OD pipeline and 365 miles of 42-in. pipeline starting at the Waha Hub near Coyanosa, Tex., in the Permian basin and ending near Agua Dulce, Tex. GCX’s Midland Lateral includes about 50 miles of 36-in. pipeline and associated compression, connecting with the GCX mainline.
The $1.7-billion project started full commercial operation in September 2019 (OGJ Online, Sept. 25, 2019).
Earlier this year, Targa Resources executed agreements to repurchase interests in its development company joint ventures from Stonepeak Partners LP for about $925 million. With that deal, pro forma, Targa owns 75% interest in its Grand Prix NGL pipeline, 100% of its Train 6 fractionator in Mont Belvieu, Tex., and a 25% equity interest in the Gulf Coast Express pipeline.