Targa Resources Races Ahead in the Permian: Q2 2025 Record Volumes, New Permits, and Pipeline Expansions

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 DiameterMiles 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.


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