Targa Resources, NextEra Energy Pipeline, WhiteWater Midstream and MPLX have executed letter of intent to jointly develop the Whistler Pipeline Project, a natural gas pipeline from the Permian Basin to the Texas Gulf Coast.
While NextEra Energy Pipeline is an indirect, wholly-owned subsidiary of NextEra Energy Resources, WhiteWater Midstream is a portfolio company of Denham Capital Management and Ridgemont Energy Partners.
The Whistler Pipeline Project is designed to deliver about 2.0 billion cubic feet per day (Bcf/d) of natural gas through a 42inch, 724km long pipeline laid between Waha, Texas and NextEra Energy Resource’s Agua Dulce market hub. The pipeline will also include an additional 273.5km of 30inch pipeline extended from Agua Dulce to Wharton County.
The new Texan pipeline project, subject to signing of definitive agreements and the receipt of required regulatory approvals, is slated to enter into operations in the fourth quarter of 2020.
While NextEra Energy Pipeline will construct the Whistler Pipeline Project, Targa will be its operator.
Various upstream connections in the Midland and Delaware Basins will supply natural gas to the Whistler Pipeline Project. Included in these are direct connections to Targa plants through a 43km long 30inch pipeline lateral and a direct connection to the 1.4Bcf/d Agua Blanca Pipeline, a joint venture of WhiteWater, WPX Energy, MPLX and Targa.
The Agua Blanca Pipeline crosses through the heart of the Delaware Basin, covering parts of Culberson, Loving, Pecos, Reeves, Winkler, and Ward counties.
As per the plans, Targa, NextEra, MPLX and WhiteWater along with their respective producer customers will collectively commit volumes of more than 1.5Bcf/day to the Whistler Pipeline Project.
Targa, in a statement, said: “In addition to the commitments of the Project sponsors and their producer customers, the Whistler Project is in negotiations for additional firm transportation commitments and is expected to launch an open season in the coming months with respect to any remaining firm intrastate transportation capacity.”
Earlier this year, Targa Resources and its partner MPLX in the Centrahoma Processing joint venture announced a new 150 million cubic feet per day cryogenic natural gas processing plant, named Hickory Hills Plant, in Hughes County, Oklahoma.