Williams and Targa Resources Corp. announced new natural gas liquids (NGL) agreements and NGL pipeline projects that will link the Conway, Kansas, and Mont Belvieu, Texas, NGL markets.
Williams will build a 188-mile NGL pipeline, called the ‘Bluestem Pipeline’, from its fractionator in Conway, Kansas, and the southern terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline (Grand Prix) in Kingfisher County, Oklahoma. Targa will construct a 110-mile extension of Grand Prix from southern Oklahoma into the Sooner Trend (oil field), Anadarko (basin), Canadian and Kingfisher (counties) (STACK) region of Central Oklahoma where it will connect with Williams’ new Bluestem Pipeline.
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.
Targa’s Grand Prix extension will have an initial capacity of approximately 120,000 barrels per day and is expected to cost approximately USD 200M. Targa and Williams are targeting an in-service date of first-quarter 2021 for both the Grand Prix extension and the new Bluestem Pipeline, respectively. 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. Williams expects its investment in these NGL logistics projects to be USD 350M to USD 400M.