Targa Resources will expand its natural gas infrastructure in the Permian basin with three processing plants and the Bull Run II gas pipeline.
Targa Resources’ expansion in the Permian Basin will add new capacity to process and transport natural gas from the Permian Delaware. The company will build the Wrangler, Ranger, and Ranger II plants, along with a new pipeline connected to the Waha distribution center.
In total, the three facilities will have an approximate processing capacity of 825 million cubic feet per day (MMcf/d) the entry into service is planned for the first half of 2028.
The investment responds to increased production in one of the main oil and gas regions of the United States. At the same time, Targa seeks to prepare its midstream infrastructure to handle larger volumes in the coming years.
Wrangler, Ranger and Ranger II will expand gas processing
Specifically, the new plants will be located in the Permian Delaware and will strengthen Targa’s ability to collect and process natural gas from the basin.
The expansion could continue after 2028; Targa is evaluating up to five additional processing plants in Delaware to meet expected long-term production growth.
The company is also considering adding another fractionation train to its complex, Mount Belvieu, Texas this facility is part of the infrastructure used to separate natural gas liquids into marketable products.
This development coincides with a period of high activity in the Permian Basin, where midstream companies are benefiting from regional production and increased natural gas demand linked to the LNG exports and to electricity consumption.
This is in addition to the expansion of data centers and operations related to artificial intelligence and cryptocurrency mining, activities with high energy requirements.
Bull Run II will bring natural gas to Waha Hub
On the other hand, Targa will develop Bull Run II, a gas pipeline of about 70 miles (113 kilometers) within its waste gas system in Permian Delaware.
The infrastructure will transport natural gas from the new processing plants to Waha Hub, one of the main gas marketing points of the Permian basin.
Bull Run II will be supported by take-or-pay contractual commitments, through which customers reserve transport capacity. Its commissioning is also planned for the first half of 2028.
In this way, Targa will be able to increase in a coordinated manner both the processing and the evacuation of the gas produced in Delaware.
Targa Resources extends its agreements with ExxonMobil until 2046
In addition to the new facilities, Targa reached tariff-based midstream agreements with a duration of 20 years with subsidiaries of ExxonMobil.
The contracts cover natural gas gathering and processing services as well as downstream activities within the Permian Basin infrastructure chain.
In the Permian Delaware Basin, the agreements incorporate new areas for integrated services including gathering, processing, treatment, transportation of natural gas liquids, and fractionation. The commitments extend through 2046.
In Permian Midland, Targa will also incorporate new areas and extend existing harvesting and processing agreements until that same year.
The contracts provide Targa with a long-term volume base to utilize its existing infrastructure and the projects it has under development.
Targa raises its growth investment target for 2026
Finally, the company raised its estimate of net growth capital by 2026 to approximately $5 billion, the figure includes new processing plants in Delaware, additional investments in field facilities, and the development of the Bull Run II pipeline.
With these projects, Targa is preparing its midstream network to absorb a greater flow of natural gas and associated liquids from the Permian Basin. The simultaneous commissioning of the plants and Bull Run II in 2028 will allow new processing capacity to be connected directly to the Waha Hub.
Source: EnergyNow
Photo: Shutterstock
