The American energy market has been booming as of late, with several projects being revived or existing projects receiving renewed attention from the government and energy companies. Now, Targa Resources, a leading provider of midstream services in North America, has stated its plans to construct a new “Speedway” natural liquefied gas pipeline connecting the Permian to Mont Belvieu, Texas. The company has big plans for the US energy market, with gas and NGL playing a vital role in the company’s ambitions.
Targa Resources to target a new energy pipeline in the Permian basin
The Permian basin has become as part of the American identity as Apple pie, with several of the world’s largest energy companies all developing projects in the region. The Permian is also home to one of the world’s largest oil deposits.
Targa Resources recently unveiled its plans to construct a new 500-mile “Speedway” NGL pipeline that will run from the Permian basin to several processing plants in Texas. The company already boasts approximately 1 million barrels per day of natural gas liquids being transported on its existing pipeline in the region, with plans to construct a new gas pipeline.
The new Speedway pipeline will connect the company’s vast assets in the Permian and any new plant additions to Targa’s fractionation and storage complex in Mont Belvieu, Texas.
Targa’s astonishing plans for the American energy market are reaching a tipping point
The new “Speedway” project will consist of 500 miles of 30-inch diameter pipeline and associated infrastructure, with an expected initial capacity of ~500 thousand barrels per day, which could be doubled to 1,000 barrels if needed. The project is expected to be completed in the third quarter of 2027, and costs are estimated at approximately $1.6 billion.
Targa is also moving forward with its plans to construct new gas processing facilities
The company has stated that, in order to accommodate any future growth in the region, it will focus on the construction of its next 275 million cubic feet per day gas processing plant, called the Yeti plant, which is also expected to come online in Q3 of 2027.
Additionally, Targa also has plans to construct five gas processing plants in the Permian that will come online over the next two years. The project comes off the back of a new deal between the United States and Japan that calls for billions to be invested in America’s gas and NGL infrastructure.
“We have benefited from meaningful volume growth across our Permian Basin assets this year, and our outlook for volume growth in 2026 continues to remain robust. Given the NGLs currently flowing through our system and numerous plant additions in progress, we will have significantly more volumes to move on Speedway when it comes into service. The strength of our outlook over the near, medium and long term is supported by multiple factors. Speedway is critical to the continued execution of our core integrated wellhead to water strategy, will generate attractive and growing fee-based cash flows, and will provide Targa with significant operating leverage once in service.” – Matt Meloy, Targa’s Chief Executive Officer
The Permian basin is set to see several new pipelines being constructed in the near future
The Permian basin has been the cornerstone of the American gas and oil sectors for decades, and with Targa’s announcement of the new “Speedway” pipeline, along with another pipeline being constructed by Enbridge, called the Whistler pipeline, the Permian is set to continue to play a vital role in the US energy market for many years to come. The US has work to do to develop its energy infrastructure, especially following its decision not to attend the G20 summit in South Africa.
