Targa Resources and Kinder Morgan team up to build Gulf Coast pipeline
According to the reports, Targa is buying a 25-percent stake in the Kinder Morgan-led project.
The roughly 690-km gas pipeline project is expected to be completed by late 2019.
Kinder Morgan still owns 50 percent of the project. An existing partner, DCP Midstream, holds the remaining 25 percent.
As part of the new deal with Kinder Morgan, Targa and DCP are committed to transporting significant volumes of gas via the pipeline from the Permian Basin area.
Targa also agreed to sell 25 percent of its proposed Grand Prix natural gas liquids pipeline to Private equity giant Blackstone Energy Partners.
Both deals help Targa diversify in the booming Permian Basin without spending much additional money, said the reports. ■