Gathering & Processing Segment
Our Gathering and Processing segment consists of gathering, compressing, treating, processing, transporting, and purchasing and selling natural gas and gathering, storing, terminaling and purchasing and selling crude oil.
We continually seek new supplies of natural gas and crude oil, both to offset the natural decline in production from connected wells and to increase throughput volumes. We obtain additional natural gas and crude oil supply in our operating areas by contracting for production from new wells or by capturing existing production currently gathered by others. Competition for new natural gas and crude oil supplies is based primarily on location of assets, commercial terms including pre-existing contracts, service levels and access to markets. The commercial terms of natural gas gathering and processing arrangements and crude oil gathering are driven, in part, by capital costs, which are impacted by the proximity of systems to the supply source and by operating costs, which are impacted by operational efficiencies, facility design and economies of scale.
The Gathering and Processing segment’s assets are located in the Permian Basin of West Texas and Southeast New Mexico (including the Midland, Central and Delaware Basins); the Eagle Ford Shale in South Texas; the Barnett Shale in North Texas; the Anadarko, Ardmore, and Arkoma Basins in Oklahoma (including the SCOOP and STACK) and South Central Kansas; the Williston Basin in North Dakota (including the Bakken and Three Forks plays) and in the onshore and near offshore regions of the Louisiana Gulf Coast and the Gulf of Mexico.
The natural gas processed in this segment is supplied through our gathering systems which, in aggregate, consist of approximately 30,910 miles of natural gas pipelines and include 54 owned and operated processing plants.
The Gathering and Processing segment’s operations consist of Permian Midland and Permian Delaware (also referred to as “Permian”), SouthTX, North Texas, SouthOK, WestOK (also referred to as “Central”), Badlands and Coastal each as described below:
Note: Please click the image to view the interactive version of the map.
The Permian Midland system consists of approximately 7,210 miles of natural gas gathering pipelines and nineteen processing plants with an aggregate processing capacity of 3,589 MMcf/d, which is inclusive of the expansions currently, all located within the Permian Basin in West Texas. Eleven of these plants and approximately 5,100 miles of gathering pipelines belong to a joint venture (“WestTX”), in which we have an approximate 72.8% ownership. Pioneer Natural Resources (“Pioneer”), a major producer in the Permian Basin, owns the remaining interest in the WestTX system.
In response to increasing production and to meet the infrastructure needs of producers, we are constructing two new 275 MMcf/d cryongenic natural gas processing plants, Legacy II and Greenwood, which are expected to begin operations in the second quarter and fourth quarter of 2023, respectively.
The Permian Delaware system consists of approximately 7,200 miles of natural gas gathering pipelines and seventeen processing plants with an aggregate capacity of 3,285 MMcf/d which is inclusive of the expansions currently, all within the Delaware Basin in West Texas and Southeastern New Mexico.
The Permian Midland and Permian Delaware systems are interconnected and volumes may flow from one system to the other providing increased operational flexibility and redundancy.
In response to increasing production and to meet the infrastructure needs of producers, we are constructing two new 275 MMcf/d cryogenic natural gas processing plants, Midway and Wildcat II, which are expected to begin operations in the second quarter of 2023 and first quarter of 2024, respectively. In conjunction with the commencement of operations of the Midway plant, we expect to idle the Sand Hills plant. Additionally, we are transferring an existing cryogenic natural gas processing plant to the Permian Delaware. The plant will be installed as a new 230 MMcf/d cryogenic natural gas processing plant, Roadrunner II, and is expected to begin operations in the second quarter of 2024.
The South Texas system contains approximately 2,100 miles of high-pressure and low-pressure gathering and transmission pipelines and three natural gas processing plants in the Eagle Ford Shale with an aggregate processing capacity of 660 MMcf/d. The South Texas system processes natural gas through the Silver Oak I, Silver Oak II and Raptor gas processing plants.
We also participate in a third joint venture (the “Carnero Joint Venture”) in South Texas with Evolve Transition Infrastructure LP (“Evolve Transition Infrastructure”). We own a 50% interest and Evolve Transition Infrastructure owns the remaining 50% interest. The Carnero Joint Venture owns and Targa operates the Silver Oak II plant, the Raptor plant and approximately 50 miles of high-pressure gathering pipeline located in La Salle, Dimmitt and Webb Counties, Texas which connects Mesquite Energy Inc.’s Catarina Ranch gathering system and Comanche Ranch acreage to the Raptor plant.
North Texas includes the Chico gathering system in the Fort Worth Basin, which gathers gas from the Barnett Shale and Marble Falls plays for processing at the Chico plant with a processing capacity of 265 MMcf/d. The system consists of approximately 4,700 miles of pipelines gathering wellhead natural gas.
The SouthOK gathering system is located in the Ardmore and Anadarko Basins and includes the Golden Trend, SCOOP, and Woodford Shale areas of southern Oklahoma. The gathering system consists of approximately 1,600 miles of pipelines in 12 counties.
The SouthOK system includes six separate processing plants with an aggregate processing capacity of 710 MMcf/d, including: the Coalgate, Stonewall, Hickory Hills and Tupelo facilities, which are owned by our Centrahoma Joint Venture, and our wholly-owned Velma and Velma V-60 plants. We have a 60% ownership interest in Centrahoma. The remaining 40% ownership interest in Centrahoma is held by MPLX, LP.
The WestOK gathering system is located in north central Oklahoma and southern Kansas’ Anadarko Basin and includes the Woodford shale and the STACK. The gathering system consists of approximately 6,600 miles of pipelines in 15 counties.
The WestOK system has an aggregate processing capacity of 400 MMcf/d with two separate cryogenic natural gas processing plants known as the Waynoka I and Waynoka II facilities.
Targa’s Badlands operations are located in the Bakken and Three Forks Shale plays of the Williston Basin in North Dakota and include approximately 500 miles of crude oil gathering pipelines, 120 MBbl of operational crude oil storage capacity at the Johnsons Corner Terminal, 30 MBbl of operational crude oil storage capacity at the Alexander Terminal, 30 MBbl of operational crude oil storage at New Town and 25 MBbl of operational crude oil storage at Stanley. The Badlands assets also include approximately 300 miles of natural gas gathering pipelines and the Little Missouri I-III natural gas processing plants, which have a processing capacity of 90 MMcf/d. Additionally, Targa operates the 200 MMcf/d Little Missouri 4 plant (“LM4 plant”), in which Targa Badlands and Hess Midstream Partners LP each own a 50% interest.
Targa owns 55% of Targa Badlands through a joint venture with Blackstone Credit and Blackstone Tactical Opportunities (collectively, “Blackstone”). Targa continues to be the operator of Badlands and holds majority governance rights.
Our Coastal assets, located in and offshore Louisiana, gather and process natural gas produced from shallow-water central and western Gulf of Mexico natural gas wells and from deep shelf and deep-water Gulf of Mexico production via connections to third-party pipelines or through pipelines owned by us. The Coastal system has an aggregate processing capacity of 2,025 MMcf/d and 11 MBbl/d of integrated fractionation capacity, and consists of approximately 1,000 miles of onshore gathering system pipelines, and approximately 200 miles of offshore gathering system pipelines. The processing plants are comprised of three wholly-owned and operated plants, one partially owned and operated plant, and one partially owned, non-operated plant. Our Coastal plants have access to markets across the U.S. through the interstate natural gas pipelines to which they are interconnected. The industry continues to rationalize gas processing capacity along the western Louisiana Gulf Coast with most of the producer volumes going to more efficient plants, such as our Lowry and Gillis plants.