HOUSTON, Oct. 5 (Xinhua) -- U.S. pipeline giants Targa Resources and Kinder Morgan are teaming up to work on the Gulf Coast express pipeline project, local media reported on Thursday.
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.
There are at least 15 projects to expand or construct oil or gas pipelines that will traverse most of Texas from the Permian Basin to Houston and other places. These projects routinely cost more than 1 billion U.S. dollars each, said the reports.
Based in Houston, Texas, Targa Resources is a Fortune 500 company. It is one of the largest providers of natural gas and natural gas liquids in the United States. Its operations are based largely, though not entirely, on the Gulf Coast.
The Permian Basin is a sedimentary basin largely contained in the western part of the state of Texas and the southeastern part of the state of New Mexico. The Permian Basin is the largest petroleum-producing basin in the United States.