Targa Resources is making a bold move to strengthen its Permian Basin midstream network. The company announced a $1.6 billion investment to construct the Speedway NGL Pipeline, a 500-mile, 30-inch diameter system that will move up to 500,000 barrels per day of natural gas liquids (NGLs) from the Delaware and Midland basins to its fractionation and storage hub in Mont Belvieu, Texas. The project is expected online by Q3 2027.
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Key Projects Announced
- Speedway NGL Pipeline
- Length: ~500 miles
- Capacity: ~500 MBbl/d
- Destination: Mont Belvieu fractionation & storage
- In-service: Q3 2027
- Yeti Gas Processing Plant (Delaware Basin, Texas)
- Capacity: 275 MMcf/d
- One of five new Targa plants in the Permian set to start up over the next two years
- Buffalo Run Gas System
- 35-mile newbuild pipeline connecting Midland Basin plants
- 55-mile converted pipeline (shifted to natural gas service)
- Creates a fully linked Midland–Delaware intra-basin network
Capital Outlook
Targa estimates $3.3 billion in growth capital spending for 2025, with a significant portion dedicated to these Permian expansion projects. The investments reflect continued high demand for processing, transporting, and fractionating natural gas liquids across the U.S. energy system.
Market Impact
By expanding capacity out of the Permian, Targa strengthens its position as a leading supplier of NGLs like ethane, propane, and butane—critical building blocks for U.S. petrochemical production and fuel markets. With multiple new gas plants and pipelines on the way, Targa is building resiliency and connectivity across its gathering, processing, and fractionation footprint in the Permian, Eagle Ford, Bakken, and beyond.
