Targa Resources said Thursday it started up its massive Grand Prix natural gas liquids pipeline that stretches from West Texas' booming Permian Basin to the Houston area.
The pipeline is expected to help relieve pipeline shortages from the Permian. Natural gas liquids include products like propane, butane and ethane, which is a major petrochemical feedstock. The NGLs are separated into their individual components at processing facilities, called fractionators, in Mont Belvieu.
"Our Grand Prix NGL pipeline recently commenced deliveries into Mont Belvieu, realizing the long-run strategic goal of integrating our leading gathering and processing position with our premier NGL logistics, fractionation and export platform," said Targa Chief Executive Joe Bob Perkins.
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The estimated $1.3 billion pipeline project from Houston-based Targa ended up costing more than $1.4 billion and came online about two months later than previously projected. The pipeline can ship 300,000 barrels a day, which can be expanded to 500,000 barrels daily.
Grand Prix is one of three major NGL pipelines in the works from the Permian. Enterprise Products' Shin Oak NGL pipeline to the Houston area came online earlier this year and the EPIC NGL pipeline system to Corpus Christi will be in service in early 2020.
The Grand Prix system also is being expanded to stretch into Oklahoma, an effort that's under construction. Targa also plans to expand the western portion of the Grand Prix pipeline into New Mexico.
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