Targa Resources Partners LP
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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