Targa Resources Corp. has unveiled a series of new organic growth initiatives aimed at supporting the ongoing expansion of natural gas liquids (NGL) and natural gas production in the Permian Basin. The company said the projects are designed to meet growing natural gas infrastructure demands from its customer base.
Currently, Targa’s NGL transportation network handles roughly 1 million barrels per day, including volumes from the recently commissioned Pembrook II plant in the Permian Midland, which began operations during the third quarter of 2025 and is running near full capacity. Building on this momentum, the company plans to construct the Speedway NGL Pipeline (“Speedway”) to move NGLs from its existing and upcoming assets, such as the newly announced processing facility to its fractionation and storage hub in Mont Belvieu, Texas. The Speedway project will comprise approximately 500 miles of 30-inch diameter pipeline and related infrastructure, with an initial capacity of about 500 thousand barrels per day (“MBbl/d”), expandable to 1,000 MBbl/d. The line is scheduled to begin service in the third quarter of 2027 and carries an estimated cost of $1.6 billion.
To further accommodate growth in the Permian Delaware system, Targa is advancing plans for its next 275 million cubic feet per day (“MMcf/d”) gas processing plant, named Yeti, also targeted for completion in the third quarter of 2027. With Yeti included, the company now has five gas processing plants under construction across the Permian, representing a combined inlet capacity of 1.4 billion cubic feet per day (“Bcf/d”) and expected NGL output between 175 and 200 MBbl/d.
Targa additionally announced Buffalo Run, a project encompassing a new 35-mile natural gas pipeline and the conversion of a 55-mile existing pipeline to natural gas service. Together, these lines will improve connectivity between multiple plants in the Permian Midland and link the company’s Midland and Delaware natural gas infrastructure. Along with the previously announced Bull Run Extension, Buffalo Run will strengthen access to various markets, including the Waha hub, while improving reliability and flow assurance for customers. The pipeline conversion is expected to conclude in phases, with full completion anticipated by early 2028.
Following these project announcements, Speedway, Buffalo Run, and the Yeti plant, Targa now forecasts total net growth capital expenditures of around $3.3 billion for 2025, inclusive of pipe orders for Speedway and long-lead materials for Yeti.
“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. 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. Speedway is critical to the continued execution of our core integrated wellhead to water strategy, will generate attractive and growing fee-based cash flows, and will provide Targa with significant operating leverage once in service,” said Matt Meloy, Targa’s Chief Executive Officer.