Targa Resources Partners to provide NGL transportation for Eagle Ford Shale
Targa Resources Partners has announced that an exclusive non-binding memorandum of understanding (MOU) has been signed with TexStar Midstream Services and TEAK Midstream for the development of a new pipeline to transport natural gas liquids (y-grade) from processing facilities in the Eagle Ford shale to Mont Belvieu, Texas, and a new fractionation train at the Targa Resources Partners operated Cedar Bayou fractionation facility (CBF). CBF is owned by Cedar Bayou Fractionators., a joint venture that is 88% owned by Targa Resources Partners.
Upon consummation of the transaction, Targa Resources Partners would expect to become an owner in the new y-grade pipeline that would provide transportation services from natural gas processing plants in the Eagle Ford shale area, including a TEAK gas plant and a TexStar gas plant, into Mont Belvieu, Texas. The new y-grade pipeline would be designed to provide additional capacity to customers in the Eagle Ford shale area. Additionally, the y-grade pipeline would be designed to accommodate a future extension into the Permian Basin area of West Texas to provide y-grade transportation services to that growth region.
CBF would be expected to expand by 100,000 bpd, with commencement of operations expected in late 2012. The 100,000 bpd expansion would be an addition to the current 78,000 bpd expansion at CBF, which is expected to be operational in the second quarter of 2011. Upon the completion of both expansions, the y-grade fractionation capacity of CBF would be approximately 353,000 bpd.
TEAK would be expected to install and operate a new cryogenic natural gas processing plant with approximately 200 MMcf per day of processing capacity and TexStar would be expected to install and operate a new cryogenic natural gas processing plant with approximately 300 MMcf per day of processing capacity. TEAK and TexStar would expand existing gas gathering systems that supply the new natural gas processing plants. The two plants would be expected to produce approximately 50,000 bpd of y-grade. Combined, the two processing plants and the gathering systems behind them would serve twelve counties in the liquids rich Eagle Ford shale of South Texas.
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