Targa finds 'needle in the haystack' in up to $1.5B Permian midstream buy
Targa Resources Corp. found a "needle in the haystack," its CEO said, in a deal for up to $1.5 billion its affiliate struck to buy Outrigger Delaware Operating LLC, a midstream company active in two of the fastest-growing unconventional plays in the world.
The assets Targa Resources Partners LP plans to acquire are spread across six counties in Texas and are in the Permian's prolific Delaware and Midland basins.
Targa CEO Joe Bob Perkins also said the deal will increase Targa's gross processing capacity in the Permian Basin to approximately 2 Bcf/d by the end of 2017. "This is a needle in the haystack deal, a perfect fit at the right price," he said.
AltaGas' Ridley Island terminal will bolster US propane export triad
Following expansions of propane export capacity on the Gulf Coast and a new terminal in the Northeast U.S., AltaGas Ltd. moved to bolster options on the West Coast. The expansion could lift propane prices in order to boost the incentive for storage.
AltaGas announced Jan. 3 that it made a positive final investment decision on its proposed propane export terminal on Ridley Island near Prince Rupert, British Columbia. It will be the first terminal on Canada's west coast and will bolster the option already offered by AltaGas and Petrogas Energy Corp. in Ferndale, Wash.
AltaGas to build processing facilities supplying Ridley Island export project
AltaGas Ltd. entered a nonbinding letter of intent to build a 120 MMcf/d deep-cut natural gas processing facility, an NGL separation train and a rail terminal at the Montney in an area separate from the company's current operations.
The agreement with a Montney producer, signed Jan. 20, involves joint ownership of the processing facility, with the NGL separation train and rail terminal to be fully owned by AltaGas, according to a Jan. 23 news release.
The facilities would be connected to the CN rail network, allowing for the transport of propane to the Ridley Island propane export terminal in British Columbia, which has received a positive final investment decision from AltaGas.
EnLink looks to take advantage of Okla., Texas growth in 2017
The EnLink family of midstream energy companies expects "the momentum of recent volume growth" by producers to help support its strategic growth plan for 2017, according to an operational update and financial guidance news release.
2017 growth CapEx funded solely by EnLink Midstream Partners LP is projected to range from $505 million to $645 million, the companies said Jan. 23, while total growth CapEx is expected at $590 million to $750 million, taking into account contributions from joint venture partners and EnLink Midstream LLC of about $85 million to $105 million.
EnLink noted that it reached an agreement with a Newfield Exploration Co. affiliate dedicating a portion of Newfield's Anadarko STACK play acreage in Oklahoma to EnLink.
Concern over dropping inventories pushes propane prices higher
The propane market rallied between one cent and two cents per gallon in the holiday-shortened week ended Jan. 20, with concerns about rapidly falling inventories a key driver.
Lone Star pipeline grade propane at Mont Belvieu, Texas, rose 1.75 cents to trade at 74.90 cents per gallon in the week ended Jan. 20, while non-LST propane gained 1.70 cents to trade at 73.55 cents per gallon. Prices at the hub in Conway, Kan., advanced 1.50 cents at 71.50 cents per gallon.