Targa lets contract to expand Permian gas processing capacity

Targa Pipeline Mid-Continent WestTex LLC, a subsidiary of Targa Resources Corp., Houston, has let a contract to KP Engineering LP (KPE), Tyler, Tex., to build a cryogenic gas processing plant in Reagan County, Tex., near Midkiff, in the Permian basin of West Texas.

Targa Pipeline Mid-Continent WestTex LLC, a subsidiary of Targa Resources Corp., Houston, has let a contract to KP Engineering LP (KPE), Tyler, Tex., to build a cryogenic gas processing plant in Reagan County, Tex., near Midkiff, in the Permian basin of West Texas.

KPE will provide complete engineering, procurement, and construction for the grassroots Johnson plant, which will feature a main 200-MMcfd cryogenic gas processing unit equipped with low-pressure and intermediate compression, the service provider said.

Scheduled to be completed by third-quarter 2018, the Johnson plant also will include a 5,000-b/sd condensate stabilizer, custody transfer metering, slug catchers, and an NGL extraction system.

Valued at more than $100 million, this latest contract is Targa’s second award this year to KPE for delivery of EPC on a cryogenic plant in its WestTx system as part of a broader program to expand Permian midstream capabilities (OGJ Online, Jan. 24, 2017).

In February, Targa let a contract to KPE to provide EPC on the 200-MMcfd Joyce plant in Upton County, Tex., which remains on schedule for startup by the end of first-quarter 2018, according to Targa’s latest quarterly earnings report (OGJ Online, Feb. 7, 2017).

With the addition of the Johnson and Joyce plants, as well as startup of its Delaware-basin 60-MMcfd Oahu and 250-MMcfd Wildcat plants in this year’s fourth quarter and in second-quarter 2018, respectively, Targa expects to have an overall Permian gas processing capacity of 2.5 bcfd by the end of third-quarter 2018, the operator said.

US Gulf Coast operations

Separately, KPE confirmed it remains on track to complete work on a 35,000 b/d crude oil and condensate splitter at Targa’s storage and marine terminal in Channelview, Tex., by first-quarter 2018.

Requiring an overall investment of about $140 million, the Channelview project comes as part of a long-term, fee-based arrangement Targa entered with Noble Group Ltd. subsidiary Noble Americas Corp. in December 2015, under which Targa Terminals agreed to build and operate the splitter (OGJ Online, May 16, 2016).

Contact Robert Brelsford at rbrelsford@ogjonline.com.

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