Williams and Targa Resources Announce New Pipeline Agreements and Projects

• Williams and Targa Resources Corp. have announced new natural gas liquids (NGL) agreements and NGL pipeline projects that will link the Conway, Kansas, and Mont Belvieu, Texas, NGL markets.
• Williams will build a 188-mile NGL pipeline called the Bluestem Pipeline from its fractionator in Conway, Kansas, and the southern terminus of Overland Pass Pipeline to an interconnect with Targa’s Grand Prix NGL Pipeline in Kingfisher County, Oklahoma.
• Targa will construct a 110-mile extension of Grand Prix from southern Oklahoma into the Sooner Trend (oilfield), Anadarko (basin), and Canadian and Kingfisher counties (STACK) region of Central Oklahoma, where it will connect with Williams’ new Bluestem Pipeline.

“We are pleased to partner with Targa on this NGL infrastructure solution,” said Alan Armstrong, President and Chief Executive Officer of Williams. “Expanding our NGL pipeline business to interconnect with Targa’s strategically-positioned Grand Prix Pipeline will provide Williams and our customers with access to Mont Belvieu while opening up additional markets for Conway.”

Armstrong went on to say that this project will deliver a long-term infrastructure solution for NGLs from Opal, Echo Springs, Willow Creek, and Rocky Mountain Midstream processing complexes. It will also create a platform for growth.

Targa’s Grand Prix extension will have an initial capacity of approximately 120,000 bpd and is expected to cost approximately US $200 million.

“We are very pleased to be working with Williams to enhance market access for NGLs,” said Joe Bob Perkins, Chief Executive Officer of Targa. “The further expansion of our Grand Prix NGL Pipeline into the STACK is an attractive extension of a highly strategic asset for Targa and will direct significant incremental NGLs over the long-term from Williams and other third parties to Grand Prix and to our downstream assets in Mont Belvieu and Galena Park.”

Williams has also committed to Targa significant volumes which Targa will transport on Grand Prix and fractionate at Targa’s Mont Belvieu facilities. Williams will also have an initial option to purchase a 20% equity interest in one of Targa’s recently announced new fractionation trains 7 or 8 in Mont Belvieu. Williams also plans to expand the DJ Lateral of the Overland Pass Pipeline and make improvements at its Conway NGL Storage facility. Williams expects its investment in these NGL logistics projects to be US $350 million to US $400 million.