Williams and Targa to Construct Nearly 300 Mile of NGL Pipe in New $600 Million Investment

Williams and Targa Resources Corp. have announced that they will be working on a new NGL pipeline. The agreement will have the project link the Conway, Kansas, and Mont Belviue, Texas NGL markets.



The 188 mile Bluestem Pipeline will be built by Williams from its fractionator in Conway, Kansas and the terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Oklahoma.



Targa will be responsible for construction a 110 mile extension of Grand Prix which will connect southern Oklahoma and the Sooner Trend oilfield, the Anadarko basin, as well as Canadian and Kingfisher counties in Central Oklahoma where it will finally connect with Williams’ new Bluestem Pipeline.

“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,” said Alan Armstrong, President and Chief Executive Officer of Williams.

“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,” said Joe Bob Perkins, Chief Executive Officer of Targa.

An expected investment of $350 million to $400 million will be made by Williams in these NGL logistics projects, and an expected cost of $200 million will be made by Targa’s Grand Prix extension, which will have an initial capacity of approximately 120,000 bpd.

For both the Grand Prix extension and the new Bluestem Pipeline, the target in-service date set is first quarter of 2021, according to Targa and Williams.

Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL Storage facility, as part of this project.



Source:

World Pipelines