Targa (TRGP) Unit Seeks Shipper Interest for NGL Pipeline
Targa Resources Corporation’s TRGP fully-owned affiliate Targa NGL Pipeline Company LLC recently commenced an open season to see if it can obtain enough committed contracts for an interstate natural gas liquids (NGL) pipeline. The transportation service will run from a planned interconnection with upstream pipeline facilities in Kingfisher County, OK to Mont Belvieu, TX.
Pipeline construction involves huge capital investments, which are allocated to laying down new pipelines as well as expansion and maintenance of the existing operations. An open season offers better visibility of demand for the new pipeline with regard to long-term transportation.
Targa Resources’ open season began last Wednesday and is expected to close on Jul 31, 2020. Potential shippers are expected to make volume commitments for the pipeline during this period. This open season will offer them a chance to secure firm capacity for NGL transportation, contingent on their transportation service agreements stipulations. Depending on the outcomes of this open season, Targa Resources will decide the final volume of capacity for both committed and uncommitted service on the project.
The company is currently stretching its Grand Prix pipeline system to the new Kingfisher County interconnection from where it is intended to connect with Williams’ WMB new Bluestem Pipeline. Post completion of this project, Targa Resources’ expanded Grand Prix pipeline will hold an initial volume of nearly 120,000 barrels per day. The $200-million pipeline extension is slated to come online in early 2021.
This Houston, TX-based operator has lost 53.2% year to date compared with the 46.7% decline of the industry it belongs to.
Targa Resources is a premier energy infrastructure company. A leading provider of integrated midstream services in North America, the industry player primarily derives its revenues from gathering, compressing, treating, processing and selling natural gas. Targa Resources also provides services to companies associated with NGL, liquefied petroleum gas (LPG) and crude oil export.
Zacks Rank & Other Key Picks
Targa Resources currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the energy space include NGL Energy Partners LP NGL and Sprague Resources LP SRLP, both presently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Williams Companies, Inc. The (WMB): Free Stock Analysis Report
NGL Energy Partners LP (NGL): Free Stock Analysis Report
Sprague Resources LP (SRLP): Free Stock Analysis Report
Targa Resources, Inc. (TRGP): Free Stock Analysis Report
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