October 08, 2025 [Tank Storage News]- Targa Resources Corp.  has announced a series of new organic growth projects designed to support rising natural gas liquids and natural gas production in the Permian Basin, while meeting the expanding infrastructure needs of its customers.

Currently, around one million barrels per day of NGLs are transported on Targa’s existing system, including volumes from the Pembrook II plant, which came online in the third quarter of 2025 and is running at high utilisation. To accommodate further growth, the Company will construct the Speedway NGL Pipeline, a 500-mile, 30-inch diameter system connecting Targa’s Permian Basin assets to its Mont Belvieu fractionation and storage complex in Texas.

Speedway will have an initial capacity of 500 thousand barrels per day, expandable to 1,000 MBbl/d, and is expected to enter service in the third quarter of 2027. The project carries an estimated cost of 1.6 billion US dollars.

In addition, Targa has confirmed plans to build its next Permian Delaware gas processing facility – the Yeti plant – with a processing capacity of 275 million cubic feet per day. Due to be in service by the third quarter of 2027, Yeti is one of five new gas processing plants under construction by Targa, representing a combined 1.4 billion cubic feet per day of inlet capacity and estimated NGL production of 175 to 200 MBbl/d.

The Company also unveiled Buffalo Run, a project designed to improve natural gas connectivity across the Permian. This includes a new 35-mile natural gas pipeline and a 55-mile conversion of an existing pipeline into natural gas service, linking Targa’s Midland and Delaware intra-basin systems. Together with the previously announced Bull Run Extension, Buffalo Run will enhance reliability, increase market access – including to the Waha hub – and provide greater flow assurance for customers. The staged project is scheduled for full completion in early 2028.

With the addition of Speedway, Buffalo Run and Yeti, Targa now estimates total net growth capital expenditure for 2025 at approximately 3.3 billion US dollars, which includes previously ordered pipe for Speedway and long-lead items for Yeti.

Commenting on the announcement, Matt Meloy, CEO of Targa, said:
“We have benefited from meaningful volume growth across our Permian Basin assets this year, and our outlook for 2026 remains robust. Given the NGLs already flowing through our system and the plant additions under way, we expect significantly more volumes to move on Speedway once it comes into service.

“The strength of our outlook is supported by our continued volume ramp during the third quarter, customer forecasts and the industry trend of rising gas-to-oil ratios in the basin. Speedway is critical to the execution of our wellhead-to-water strategy, will generate attractive fee-based cash flows, and provide significant operating leverage for Targa once in service.”