The Permian Basin remains the engine of U.S. energy growth — and Targa Resources is making sure its midstream network keeps pace. In its Q2 2025 earnings call, Targa painted a picture of an operator running flat-out: record gas volumes, multiple plant projects ahead of schedule, and an aggressive buildout of gathering and takeaway infrastructure.
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Recent regulatory filings back this up. New air permits issued by the Texas Commission on Environmental Quality (TCEQ) and a major pipeline addition approved by the Railroad Commission of Texas show just how quickly Targa is scaling.
Record Throughput & Rapid Growth
In Q2, Permian natural gas inlet volumes hit 6.3 Bcf/d, up 11% year-over-year — the highest in Targa’s history. The company added the equivalent of a full 270 MMcf/d processing plant in Q2, another 250 MMcf/d in July, and reported August trending even higher.
Growth is coming from strong well connects by large producers, and despite a general decline in the broader Permian rig count, Targa’s own rig exposure has remained steady.
Plants & Pipelines in Motion
From the call, Targa’s Permian expansion projects include:
- Pembrook 2 (Midland) – Ahead of schedule, in start-up.
- Bull Run 2 (Delaware) – Ahead of schedule, starting Q4 2025.
- East Pembrook (Midland) – Q2 2026 start.
- East Driver (Midland) – Q3 2026 start.
- Falcon II (Delaware) – Q2 2026 start.
- Ordering long-lead equipment for 2027+ plants.
On the pipeline side:
- Bull Run Extension – 43-mile, 42-inch intrastate gas pipeline to the Waha Hub, in-service Q1 2027.
- Blackcomb & Traverse expansions – Strong demand; Traverse upsized to 2.5 Bcf/d capacity.
Regulatory Greenlights: Air Permits in 2025
TCEQ’s 2025 air permit records for Targa show multiple high-impact projects advancing, including:
- East Driver Gas Plant – GP-EDV (Midland County) – Standard permit, pending approval.
- East Pembrook Gas Plant (Upton County) – Standard permit, pending approval.
- Daytona Pump Station (Taylor County) – PBR new registration, completed.
- Foxtrot Compressor Station – CS-FXT (Midland County) – Standard permit, completed.
- Luau Compressor Station (Loving County) – Standard permit, completed.
These permits align directly with the infrastructure roadmap laid out on the earnings call, signaling that construction timelines are backed by regulatory readiness.
Pipeline Addition Permit 09661: 82 Miles of New Steel
In June 2025, Targa Midland LLC received Permit Amendment 09661, authorizing an 82.63-mile pipeline addition spanning Borden, Dawson, Howard, and Martin counties — prime territory in the Midland sub-basin.
Key specs:
Pipe Diameter Miles Added 6″ 5.16 8″ 9.62 10″ 1.29 12″ 18.52 16″ 17.95 20″ 4.09 24″ 26.00
This expansion boosts both gathering and takeaway capacity, integrates with Targa’s Gulf Coast-bound NGL network, and adds GIS upgrades for better operational visibility.
Competitive Position & Outlook
Targa is the largest sour gas treater in the Delaware Basin with 2.3 Bcf/d capacity and 7 AGI wells. Long-term acreage commitments in the Avalon, Bone Spring, and Wolfcamp benches ensure a steady flow of volumes.
Looking ahead, associated gas in the Permian is forecast to grow ~7% annually over the next five years. Targa expects to outperform that, helped by new egress pipelines in 2026+ that could push margins above fee floors.
The Bigger Picture
The combination of record throughput, aggressive plant construction, air permit approvals, and new pipeline mileage shows a midstream company not just reacting to demand but building ahead of it. In a basin where infrastructure bottlenecks can make or break producers, Targa’s strategy is clear: own the flow from wellhead to export dock.
