Infrastructure giant Williams and midstreamer Targa Resources Wednesday announced roughly $550 million to $600 million in natural gas liquids pacts and pipeline projects to link Conway, Kansas, and Mont Belvieu, Texas.
Williams will build the 188-mile NGL Bluestem Pipeline, from its fractionator in Conway, and the southern terminus of the Overland Pass Pipeline, to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Oklahoma. Total project costs are between $350 million and $400 million, Kallanish Energy reports.
Targa will construct a $200 million, 110-mile extension of Grand Prix from southern Oklahoma into the Sooner Trend (oilfield), Anadarko Basin, Canadian and Kingfisher (counties) (STACK) region of Central Oklahoma, where it will connect with Williams’ new Bluestem line.
“We are pleased to partner with Targa on this NGL infrastructure solution,” said Alan Armstrong, president and CEO of Williams. “Expanding our NGL pipeline business to interconnect with Targa’s strategically-positioned Grand Prix Pipeline will provide Williams and our customers with access to Mont Belvieu while opening up additional markets for Conway.”
Armstrong added the new lines deliver infrastructure for NGLs from Williams’ Opal, Echo Springs, Willow Creek and Rocky Mountain Midstream processing complexes.
In connection with this project, Williams has committed to Targa “significant volumes” which Targa will transport on Grand Prix and fractionate at Targa’s Mont Belvieu facilities. Williams will also have an initial option to purchase a 20% equity interest in one of Targa’s recently announced new fractionation trains 7 or 8 in Mont Belvieu.
“We are very pleased to be working with Williams to enhance market access for NGLs,” said Joe Bob Perkins, CEO of Targa. “The further expansion of our Grand Prix NGL Pipeline into the STACK is an attractive extension of a highly strategic asset for Targa and will direct significant incremental NGLs over the long-term from Williams and other third parties to Grand Prix and to our downstream assets in Mont Belvieu and Galena Park.”
Targa’s Grand Prix extension will have an initial capacity of roughly 120,000 barrels per day. Targa and Williams are targeting an in-service date of first-quarter 2021 for both the Grand Prix extension and the new Bluestem Pipeline.
As part of the project, Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL Storage facility.
This post appeared first on Kallanish Energy News.