Targa Resources Corp. entered development joint ventures worth $1.1 billion with Stonepeak Infrastructure Partners-affiliated investment vehicles.
The development joint ventures own 25% of Targa's interest in the Gulf Coast Express Pipeline, 20% interest in the Grand Prix Pipeline and 100% of the company's next fractionation train at Mont Belvieu, Texas.
Targa will control management, construction and operation of the Grand Prix Pipeline and its next Mont Belvieu train, expected to cost about $350 million, according to a Feb. 6 news release.
Stonepeak gave a commitment of about $960 million of capital, with an initial contribution of about $190 million to Targa for reimbursement of capital it has spent. Targa committed about $150 million for its share of future capital costs.
Targa also plans to build two new 250 MMcf/d cryogenic natural gas processing plants to aid production in the Midland Basin. The first plant is expected to operate first quarter of 2019, with the second expected in the third quarter of the same year.
Targa's estimated net growth CapEx for the projects is now $1.6 billion. The company will continue to evaluate asset sales and/or other development joint ventures to support or replace equity needs.
Targa Resources owns and operates a diversified portfolio of midstream energy assets.
