Targa Resources plans new $1.6 billion, 500-mile pipeline from Permian Basin to Mont Belvieu

October 1, 2025

Houston-based Targa Resources Corp. (NYSE: TRGP) is planning a 500-mile natural gas liquids pipeline from the Permian Basin to Mont Belvieu that could double the company's NGL transportation capacity.

The Speedway NGL Pipeline is expected to cost $1.6 billion and enter service in the third quarter of 2027. It will initially transport about 500,000 barrels per day of natural gas liquids but could be expanded to a capacity of 1 million bpd. Targa currently transports about 1 million bpd in its existing NGL transportation system.

The pipeline will transport NGLs from Targa’s existing facilities in the Permian and future plant additions.

The company also is constructing a new natural gas processing plant, called the Yeti plant, in Delaware Basin portion of the Permian. The new plant will have the capacity to process 275 million cubic feet per day of natural gas and is also expected to be in service in the third quarter of 2027.

“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,” CEO Matt Meloy said in a Sept. 30 press release.

“The strength of our outlook over the near, medium and long term is supported by multiple factors, including our continued volume ramp during the third quarter, the bottom-up forecast we see from our customer base, and the continued industry trend of rising gas-to-oil ratios in the basin.”

Targa is also planning a new 35-mile natural gas pipeline to better connect its plants in the Midland Basin portion of the Permian. Additionally, the company will convert a 55-mile pipeline into natural gas service to connect Targa’s Midland and Delaware natural gas systems. Together, the two pipelines are called the Buffalo Run system, which is expected to be fully complete in early 2028.

Including Targa’s new Yeti plant, it is currently constructing five gas processing plants in the Permian that will be online in the next two years. The new plants have an aggregate inlet capacity of 1.4 billion cf/d and an estimated NGL production capacity of 175,000 to 200,000 bpd.

The company's Pembrook II plant in the Midland Basin also came online in the third quarter.

With Targa’s new announcements of the Speedway Pipeline, Yeti plant and Buffalo Run system, the company estimates total growth capital expenditures in 2025 to be around $3.3 billion.

Targa ranked No. 18 on the Houston Business Journal’s 2025 Largest Houston-Area Public Companies List with 2024 revenue of $20.84 billion.

The midstream industry has been busy announcing new projects in and around the Houston area. The Matterhorn joint venture, which involves Oklahoma-based Oneok Inc. (NYSE: OKE), Austin-based WhiteWater, Ohio-based MPLX LP (NYSE: MPLX) and Canada-based Enbridge Inc. (NYSE: ENB) recently reached a final investment decision on a new natural gas pipeline from the Permian Basin to Katy.

The Eiger Express Pipeline is designed to transport up to 2.5 billion cf/d of natural gas and be completed by mid-2028.

A separate joint venture, WPC, which involves WhiteWater, MPLX and Enbridge, also recently reached a final investment decision with Targa to develop a 160-mile, bidirectional natural gas pipeline between the Corpus Christi area and Katy.

In October 2024, Houston-based Kinder Morgan Inc. (NYSE: KMI) reached a final investment decision on its $455 million Gulf Coast Express Pipeline expansion project, which will transport an additional 570 million cubic feet per day of natural gas from the Permian Basin to South Texas.

Earlier this year, the company also reached a final investment decision for its new $1.7 billion pipeline that will transport natural gas from Katy to Port Arthur.

There will “be a need for further Permian egress” in the second half of the decade, and Kinder Morgan will likely have to expand its downstream systems as well to support the growing supply and demand, Kinder Morgan CEO Kim Dang said during the company's fourth-quarter 2023 earnings call.