Logistics & Marketing Segment
Our Logistics and Marketing segment is also referred to as our Downstream Business. Our Downstream Business includes the activities necessary to convert mixed NGLs into NGL products and provides certain value-added services such as the fractionation, storage, terminaling, transportation, exporting, distribution and marketing of NGLs and NGL products; the storing and terminaling of refined petroleum products and crude oil; and certain natural gas supply and marketing activities in support of our other businesses, as well as transporting natural gas and NGLs. These assets are generally connected to and supplied in part by our Gathering and Processing segment and are predominantly located in Mont Belvieu and Galena Park, Texas, in Lake Charles, Louisiana, in Tacoma, Washington and in Baltimore, Maryland.
The Logistics and Marketing segment covers activities required to distribute and market raw and finished NGLs and all natural gas marketing activities. It includes (1) marketing our own NGL production and purchasing NGL products for resale in selected United States markets; (2) providing LPG balancing services to refinery customers; (3) transporting, storing and selling propane and providing related propane logistics services to multi-state retailers, independent retailers and other end-users; (4) providing propane, butane and services to LPG exporters; and (5) marketing natural gas available to us from our Gathering and Processing segment and the purchase and resale and other value added activities related to third-party natural gas in selected United States markets.
The Logistics and Marketing segment also transports, distributes and markets NGLs via terminals and transportation assets across the U.S. We own or commercially manage terminal facilities in a number of states, including Texas, Oklahoma, Louisiana, Arizona, Nevada, California, Florida, Alabama, Mississippi, Tennessee, Kentucky, New Jersey and Washington. The geographic diversity of our assets provide direct access to many NGL customers as well as markets via trucks, barges, ships, rail cars and open-access regulated NGL pipelines owned by third parties.
The Logistics and Marketing segment consists of assets and business activities associated with: Fractionation, NGL Storage and Terminaling, Petroleum Logistics, NGL Distribution and Marketing, Wholesale Domestic Marketing, Refinery Services, Commercial Transportation and Natural Gas Marketing.
In May 2017, we announced plans to construct a new common carrier natural gas liquids ("NGL") pipeline from the Permian Basin. Targa's NGL pipeline ("Grand Prix") will transport volumes from the Permian Basin, and also from Targa's North Texas system, to Targa's fractionation and storage complex in the NGL market hub at Mont Belvieu, Texas. Grand Prix will be supported by Targa's volumes and other third party customer commitments, and is expected to be in service in the second quarter of 2019. The capacity of the pipeline from the Permian Basin will be approximately 300 thousand barrels per day, expandable to 550 thousand barrels per day.
The following table details the Logistics and Marketing segment's fractionation and treating facilities as of December 31, 2016
The following table details the Logistics and Marketing segment's NGL terminaling facilities at December 31, 2016
We generally purchase mixed NGLs at a monthly pricing index less applicable fractionation, transportation and marketing fees and resell these component products to petrochemical manufacturers, refineries and other marketing and retail companies. This is primarily a physical settlement business in which we earn margins from purchasing and selling NGL products from customers under contract. We also earn margins by purchasing and reselling NGL products in the spot and forward physical markets. To effectively serve our distribution and marketing customers, we contract for and use many of the assets included in our Logistics and Marketing segment.
Our Petroleum Logistics business owns and operates storage and terminaling facilities in Texas, Maryland and Washington. These facilities not only serve the refined petroleum products and crude oil markets, but also include LPGs and biofuels.
The following table details the Logistics and Marketing Segments's Facilities petroleum logistics facilities at December 31, 2016
The following table details the Wholesale Marketing Terminal facilities as of December 31, 2016
Our transportation assets, as of December 31, 2016, include approximately 700 railcars that we lease and manage, approximately 90 leased and managed transport tractors and 20 company-owned pressurized NGL barges.