Targa Resources Partners Buys Added Property on Houston Ship Channel
Targa Resources Partners LP (NYSE: NGLS) ("Targa" or the "Partnership") today announced that it has acquired additional property on the Houston Ship Channel ("Targa Patriot Marine Terminal" or "Patriot Terminal") that provides expansion potential for both its Petroleum Logistics clean fuels business and its propane/butane export capabilities.
Targa Patriot, which is located about two miles from the Partnership's Galena Park Marine Terminal, includes an existing dock, acreage for expansion build-out, an existing rail siding, and nearby access to the Colonial/Explorer refined products pipeline interconnect hub. The proximity of the Patriot Terminal to Targa's existing petroleum logistics business at Channelview and to our LPG exports facilities at Galena Park offers Targa cost effective future options to meet growing customer and market demands for both product services.
The Patriot Terminal can be readily connected to Galena Park and to Targa's Mount Belvieu complex including the Cedar Bayou Fractionator facilities, and is complementary to Targa's propane/butane export business. LPG exports have grown rapidly with significant volumes of domestic grade propane (HD5) and butane, and the Partnership's previously announced major capital program will create significant incremental capability for export of international grade propane. The international export project will come on line in two phases in 3Q 2013 and 3Q 2014, and Targa has largely contracted its anticipated capacity. If the need for propane/butane export capacity continues to grow, the Patriot Terminal provides Targa and its customers with economically attractive interconnected expansion potential. The initial investment including acquisition of the property and dock upgrade and refurbishment is approximately $25 million. Further plans for clean fuels and/or propane/butane export activity are being developed and could significantly increase growth capital expenditures over time.
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