(The Center Square) – Targa Resources Corp Tuesday announced investments in several capital projects aimed at increasing its capacity to produce, process and transport natural gas and natural gas liquids produced in the Permian Basin and a pipeline to the company’s natural gas liquid facility near Houston.
Houston-based Targa said it will move forward on the construction of a 275 million cubic feet per day gas processing plant in the Permian Basin, which it has named the Yeti plant, and a 500,000 bpd natural gas liquids pipeline that will run more than 500 miles to Mont Belvieu, Texas, near Houston.
The Speedway NGL Pipeline can be expanded to 1 million barrels per day, according to Targa. Currently, Targa moves about 1 million barrels per day of natural gas liquids on its existing NGL pipeline system.
Natural gas liquids such as propane, butane and ethane are separated from natural gas and used for residential and commercial heating and cooking, in myriad industrial processes, and as a feedstock for manufacturing products that include plastics, fertilizer and detergent.
In July, U.S. NGLs production totaled 7.6 million barrels per day, a record high, while NGLs exports reached 3.21 barrels per day, just below the all-time high.
Targa is currently building a total of five gas processing plants in the Permian Basin. The company said it expects that the five gas processing plants, which will have aggregate capacity of 1.4 billion cubic feet per day, will be online within two years.
“We have benefited from meaningful volume growth across our Permian Basin assets this year, and our outlook for volume growth in 2026 continues to remain robust,” said Matt Meloy, Targa’s chief executive officer. “Given the NGLs currently flowing through our system and numerous plant additions in progress, we will have significantly more volumes to move on Speedway when it comes into service,” Meloy said.
Targa estimates its total net growth capital expenditure in 2025 at around $3.3 billion. The figure includes the cost of steel pipe purchased for the Speedway NGLs Pipeline and items already ordered for the Yeti plant. The company estimates the Speedway Pipeline will cost $1.6 billion and projects an in-service date in the third quarter of 2027.
Targa gathers, compresses, treats, processes, transports, and buys and sells natural gas, NGLs and NGL products, and crude oil.
