Targa’s Gulf Coast Express Pipeline Project partnership

Following Targa’s announcement earlier this week the company has also executed a letter of intent with Kinder Morgan Texas Pipeline LLC and DCP Midstream, LP with respect to the joint development of the proposed Gulf Coast Express Pipeline Project (GCX Project), which would provide an outlet for increased natural gas production from the Permian Basin to growing markets along the Texas Gulf Coast.

The participation of the three parties involved with the GCX Project is subject to negotiation and execution of definitive agreements. As part of the definitive agreements, Targa would own a 25% stake in the GCX Project, and would commit significant volumes to the proposed project, including certain volumes provided by Pioneer Natural Resources Company, a joint owner in Targa’s WestTX Permian Basin system and one of the largest producers in the Permian Basin.

The GCX Project is expected to have capacity of approximately 1.92 billion cubic feet per day, and would include a lateral into the Midland Basin, consisting of approximately 50 miles of 36-inch pipeline and associated compression to serve gas processing facilities owned by Targa, as well as those owned jointly by Targa and Pioneer in Targa’s WestTX system.

The expected in-service date of the pipeline continues to be scheduled for the second half of 2019, pending the timely completion of definitive agreements with shippers and a final investment decision by the three parties.

For more information visit www.targaresources.com

11th Oct 2017