Targa Resources Partners has signed an exclusive non-binding Memorandum of Understanding (MOU) with TexStar Midstream Services and TEAK Midstream to develop a new pipeline for transportation of natural gas liquids (y-grade) from processing facilities in the Eagle Ford shale to Mont Belvieu, Texas.
The contract has also been signed for 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.
The new y-grade pipeline will provide transportation services from natural gas processing plants in the Eagle Ford shale area that includes a TEAK gas plant and a TexStar gas plant, into Mont Belvieu, Texas.
The new y-grade pipeline will provide additional capacity to customers in the Eagle Ford shale area.
Also, the y-grade pipeline will accommodate a future extension into the Permian Basin area of West Texas to provide y-grade transportation services to that growth region.
CBF is expected to expand by 100,000 barrels per day, with commencement of operations expected in late 2012.
TEAK will to install and operate a new cryogenic natural gas processing plant with approximately 200mmcf per day of processing capacity while TexStar will install and operate a new cryogenic natural gas processing plant with approximately 300mmcf per day of processing capacity.